General Appropriations Bill H. 3400 for the fiscal year beginning July 1, 1997

PART IB

TEMPORARY PROVISIONS

PLEASE NOTE:

Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17, 1997.
**Indicates those vetoes overridden by the General Assembly on June 17, 1997.
Unless otherwise stated, provisions not vetoed by the Governor took effect June 14, 1997.

PLEASE NOTE:

At the time this Act was printed, litigation was pending with respect to the validity of certain
vetoes. The outcome of this litigation may affect the provisions of this act that were the subject
of the vetoes.

PART IB

OPERATION OF STATE GOVERNMENT

SECTION 1

1.1. (Revenues, Deposits Credited to General Fund) For the
current fiscal year, except as hereinafter specifically provided, all general state revenues derived
from taxation, licenses, fees, or from any other source whatsoever, and all institutional and
departmental revenues or collections, including income from taxes, licenses, fees, the sale of
commodities and services, and income derived from any other departmental or institutional
source of activity, must be remitted to the State Treasurer at least once each week, when
practical, and must be credited, unless otherwise directed by law, to the General Fund of the
State. Each institution, department or agency, in remitting such income to the State Treasurer,
shall attach with each such remittance a report or statement, showing in detail the sources
itemized according to standard budget classification from which such income was derived, and
shall, at the same time, forward a copy of such report or statement to the Comptroller General
and the State Budget and Control Board. In order to facilitate the immediate deposit of
collections, refunds of such collections by the State institutions where properly approved by the
authorities of same, may be made in accordance with directions from the State Comptroller
General and State Treasurer. Revenues derived from the General Retail Sales Tax, the Soft
Drinks Tax, and the State's portion of Revenue derived from the Alcoholic Liquors Tax and
Cable Television Fees, must be expended to cover appropriations herein made for the support of
the public school system of the State only, and any amount of such appropriations in excess of
these revenues shall be paid from other General Fund Revenues. Appropriations in this Act for
the support of the public school system shall include the following:

Department of Education;
State Board for Technical and Comprehensive Education;
Educational Television Commission;
Wil Lou Gray Opportunity School;
School for the Deaf and the Blind;
John de la Howe School;
Debt Service on Capital Improvement Bonds Applicable to
Above Agencies;
Debt Service on School Bonds.
Other School Purposes.

SECTION 1A

1A.1. (Use of Funds) It is the intent of the General Assembly to
appropriate all State funds and to authorize and/or appropriate the use of all Federal and other
funds for the operations of State agencies and institutions for the current fiscal year. Transfers of
funds may be approved by the Budget and Control Board under its authority or by the agency as
set forth herein in Section 72.9. Any agency which requests or transfers personal service funds
must indicate on the transfer document whether or not a reduction in force is involved. To the
extent practicable, all agencies and institutions having Federal or other funds available for the
financing of their operation shall expend such funds in accordance with the intent of this Act.
The authorization to spend Federal and other funds shall be decreased to the extent that receipts
from these sources do not meet the estimates as reflected in each Section of this Act; and any
increase shall be authorized through the review process as set forth in Act 651 of 1978 as
amended.

SECTION 2

2.1. (Appropriations From Funds) Subject to the terms and
conditions of this act, the sums of money set forth in this Part, if so much is necessary, are
appropriated from the general fund of the state, the education improvement act fund, the
highways and public transportation fund, and other applicable funds, to meet the ordinary
expenses of the state government for Fiscal Year 1997-98, and for other purposes specifically
designated.

SECTION 2A

2A.1. (Fiscal Year Definitions) For purposes of the
appropriations made by this Part, "current fiscal year" means the fiscal year
beginning July 1, 1997, and ending June 30, 1998, and "prior fiscal year" means the
fiscal year beginning July 1, 1996, and ending June 30, 1997.

2A.2. (Descriptive Proviso Titles) Descriptive proviso titles
listed in this Act are for purposes of identification only and are not to be considered part of the
official text.

A99 - SECTION 3 - LEGISLATIVE DEPARTMENT

3.1. (LEG: Legislative Employee Designations) The positions
included in this section designated (P) shall denote a permanent employee and the salary is an
annual rate. The positions designated (T) shall denote a temporary employee and the salary is
for a period of six months to be paid at that rate only while the General Assembly is in session.
The positions designated as (Interim) shall denote a temporary employee and the salary is for a
period of six months to be paid at that rate while the General Assembly is not in session. The
positions designated (PTT) shall denote part-time temporary employees on a twelve months
basis. The positions designated (PPT) shall denote permanent part-time employees retained for
full-time work on a six months basis or the duration of the legislative session.

3.2. (LEG: House Employee Reimbursement) The Speaker of
the House is authorized to reimburse travel and other expenses incurred by employees of the
House of Representatives for official business in accord with current rules and regulations.

3.3. (LEG: Approved Accounts Expenditure) The clerks of the
two Houses and the Legislative Council are authorized to issue their warrants on Approved
Accounts for necessary extra clerical or other services upon approval of the Speaker of the
House or Lieutenant Governor, respectively.

3.4. (LEG: Legislative Employee BPI/Merit) Notwithstanding
any other provision of law, legislative employees designated (P) or (PPT) shall receive base pay
and average merit pay in the same manner as such pay is granted to classified state employees.
For purposes of this proviso, "legislative employees" does not include employees of
the House of Representatives.

3.5. (LEG: House Employees Salary Adjustments) Necessary
temporary or permanent research assistants for the House of Representatives shall be paid from
Approved Accounts of the House upon approval of the Speaker with the advice and consent of
the Chairman of the standing committees. The Speaker may adjust salary levels of employees of
the House, to be paid for from funds carried forward from the Research Assistant Accounts.

3.6. (LEG: Interim Expenses Allowance) The Chairman of the
Standing House and Senate Committees shall each be allowed the sum of four hundred dollars
for expenses during the interim, between sessions of the General Assembly, to be paid from the
House or Senate approved accounts, with each body paying the expense allowance of the
chairman in its membership.

3.7. (LEG: Subsistence/Travel Regulations) Notwithstanding
any other provision of law:

a. Members of the General Assembly shall receive subsistence
expense equal to the maximum allowable by regulation of the Internal Revenue Code, for the
Columbia area for each legislative day that the respective body is in session and in any other
instance in which a member is allowed subsistence expense. No member of the General
Assembly except those present are eligible for subsistence on that day. Legislative day is
defined as those days commencing on the regular annual convening day of the General
Assembly and continuing through the day of adjournment sine die, excluding Friday, Saturday,
Sunday and Monday.

b. Standing Committees of the Senate and House of
Representatives are authorized to continue work during the interim. When certified by the
Chairman, the members serving on such Committees shall receive a subsistence as provided in
item "a." above, mileage at the rate provided for by law, and the regular per diem
established in this Act for members of boards, commissions, and committees while attending
scheduled meetings. Members may elect to receive actual expenses incurred for lodging and
meals in lieu of the allowable subsistence expense. The funds for allowances specified in this
proviso shall be paid to the members of the Senate or House of Representatives from the
Approved Accounts of the respective body except as otherwise may be provided.

c. Joint Study Committees created pursuant to Acts and
Resolutions of the General Assembly are authorized to continue work during the interim to
secure such information and complete such investigations as may be assigned to the respective
Committees. When certified by the Chairman, the members appointed to such Committees shall
receive a subsistence as provided in item "a." above, mileage at the rate provided for
by law and the regular per diem established in this Act for members of boards, commissions, and
committees while attending scheduled meetings. Members may elect to receive actual expenses
incurred for lodging and meals in lieu of the allowable subsistence expense. The allowances
specified in this proviso shall be paid from funds appropriated to the respective Committees for
such purposes, or from Approved Accounts of the respective body of the General Assembly if no
funds have been appropriated to such a Committee for these purposes.

d. Members of the Senate and the House of Representatives
when traveling on official State business shall be allowed a subsistence as provided in item
"a." above, transportation expenses as provided for by law and the regular per diem
established in this Act for members of boards, commissions, and committees upon approval of
the appropriate Chairman. When traveling on official business of the Senate or the House of
Representatives not directly associated with a Committee of the General Assembly, members
shall be paid the same allowance upon approval of the President Pro Tempore of the Senate or
the Speaker of the House of Representatives. In either instance, the members may elect to
receive actual expenses incurred for lodging and meals in lieu of the allowable subsistence
expense. The funds for the allowances specified in this proviso shall be paid from the Approved
Accounts of the Senate or the House of Representatives or from the appropriate account of the
agency, board, commission, task force or committee upon which the member serves.

3.8. (LEG: Expense/Compensation Vouchers) All vouchers for
the payment of the expenses and/or compensation of committees of the General Assembly shall
be prepared by the Clerks of the two Houses.

3.9. (LEG: Senate Voucher Approval) All payroll vouchers
disbursement vouchers, and interdepartmental transfers of the Senate shall only require the
approval of the Clerk of the Senate.

3.10. (LEG: Supplies Approval) Notwithstanding any other
provision of law, all supplies for the Senate shall be purchased only upon the authority of the
Clerk of the Senate and all supplies for the House of Representatives shall be purchased only
upon the authority of the Clerk of the House.

3.11. (LEG: Telephone Service) The Clerks of the Senate and
the House, with the approval of the Senate Operations and Management Committee and the
Speaker of the House, respectively, shall cause to be installed such telephone service as may be
appropriate for use of the membership and presiding officer of each legislative body.

3.12. (LEG: Research Directors Appointment) The Speaker of
the House shall appoint the Executive Director of Research. The Speaker, with the advice and
consent of the individual committee chairman, shall appoint the Director of Research for each
standing committee.

3.13. (LEG: House Pages) One hundred forty-four Pages shall
be appointed by the Speaker of the House of Representatives and they shall be available for any
necessary service to the House of Representatives.

3.14. (LEG: Sergeant-At-Arms & Director of Security
Duties) The duties of the Sergeant-at-Arms and Director of Security of the respective Houses
and/or Assistant Sergeant-at-Arms shall be those provided by the Code, the Rules of the
respective Houses, those designated by the President Pro Tempore of the Senate or the Speaker
of the House, the security of personnel and property of the respective Houses, and in addition the
Sergeant-at-Arms and Director of Security of the respective Houses and/or Assistant
Sergeant-at-Arms shall meet and escort visitors in and about their respective bodies and shall,
during the hours of duty, be dressed in a distinctive manner so as to be easily identified as
Sergeant-at-Arms and Director of Security of the respective Houses.

3.15. (LEG: Leg. Council Employment/Salary Adjustments)
The Legislative Council is authorized to employ additional stenographic or other help between
sessions as the Council may deem necessary, at such salary or salaries as the Council may set, to
be paid from Approved Accounts. Notwithstanding any limitation or other provision of law to
the contrary, the Legislative Council may adjust salaries for Legislative Council personnel. Any
adjustments made must be paid from funds appropriated for the Council or from the funds
appropriated to the Council under Section 3C for this purpose, or both.

3.16. (LEG: Leg. Information Systems Management) The
Legislative Information Systems shall be under the direction and management of a council
composed of the President of the Senate, Speaker of the House, Chairman of Senate Finance
Committee, Chairman of House Ways and Means Committee, Chairman of the Senate Judiciary
Committee and Chairman of the House Judiciary Committee.

3.17. (LEG: Legislative Printing Management) The Office of
Legislative Printing and Information Technology Resources shall operate under the supervision
and administrative direction of the Clerks of the respective Houses.

3.18. (LEG: State House Renovation) Any improvements and
additions to the State House must be recommended or approved by the State House Committee
of the General Assembly, and that bidding, executing, and carrying out of contracts shall be in
accord with standing regulations and procedures for any other work of the same type applicable
to agencies and institutions of State government.

3.19. (LEG: Senate Research Personnel Compensation)
Notwithstanding any other provision of law, Senate Research personnel other than Directors of
Research and the committee research staff shall be paid from funds appropriated for Senate
Research at the direction of the Clerk of the Senate.

3.20. (LEG: Legislative Council Availability) Personnel
employed under the provisions of Subsection 3C of this section for Legislative Research shall be
available upon request of the Committee Chairman to work with the standing or interim
committees of the Senate and the House of Representatives.

3.21. (LEG: Contract for Services) The Standing Committees of
the Senate may, upon approval of the President Pro Tempore, contract with state agencies and
other entities for such projects, programs, and services as may be necessary to the work of the
respective committees. Any such projects, programs or services shall be paid from funds
appropriated for contractual services.

3.22. (LEG: Jt. Leg. Committee Operational Authorization)
Only the Joint Legislative Committees for which funding is provided herein are authorized to
continue operating during the current fiscal year under the same laws, resolutions, rules or
regulations which provided for their operations during the prior fiscal year.

3.23. (LEG: Legislative Carry Forward) In addition to the funds
appropriated in this section, the funds appropriated under Sections 3A, 3B, 3C, 3D, and 3G for
the prior fiscal year which are not expended during that fiscal year may be carried forward to be
expended for the same purposes in the current fiscal year.

3.24. (LEG: Senate Expenditures/O&M Committee)
Notwithstanding any limitation or other provisions of law to the contrary, funds expended by the
Senate for salary adjustments, professional fees and dues and necessary expenses, supplies, and
equipment for Senate employees, must be paid from funds appropriated to the Senate Operations
and Management Committee and funds available in approved accounts of the Senate, and shall
be authorized and allocated in such manner as determined by the Senate Operations and
Management Committee.

3.25. (LEG: Nurses) The State shall provide to the nurses under
Subsection 3A of this section the same leave time and basic health and accident insurance
coverage as is provided other state employees pursuant to law. All of the amount provided in
3A for nurses shall be utilized for the specified purpose.

3.26. (LEG: Dues) The funds provided herein for the Council of
State Governments and the National Conference of State Legislatures are appropriated to be paid
as dues to the respective organizations and these funds shall not be transferred to any other
program.

3.27. (LEG: Copy of Act to Counties) Notwithstanding any
other provision of law, the Clerk of the House is required to send only one copy of each Act to
the Clerk of the Court of the various counties.

3.28. (LEG: In-District Compensation) All members of the
General Assembly shall receive an in district compensation of $1,000 per month effective
January 1, 1995.

3.29. (LEG: Additional House Support Personnel) An amount
of $150,000 is appropriated for the purpose of providing additional support personnel to assist
House members who are not already being furnished with direct legislative assistance in the
conduct of their Legislative responsibilities. This amount shall be used for staffing requirements
where necessary for part time personnel. The additional personnel shall be used only when the
House is in regular, extended, or special session. At a member's request, the House Operations
and Management Committee may use any unexpended portion of a member's allotment to
purchase equipment for a member's office. The amount herein appropriated for additional
support personnel to assist House members shall be allocated to each member on a pro-rata
basis. Each member may choose to expend his allocation for an individual legislative aide or
may choose to combine his allocation with allocations of other House members for a legislative
aide to assist each of the members contributing to the expense of that aide.

3.30. (LEG: Per Diem) No per diem may be paid to any person
from more than one source for any one calendar day.

3.31. (LEG: House Postage) The Speaker of the House is
authorized to approve no more than $600 per member per fiscal year for postage.

3.32. (LEG: Legislative Dual Employment) Each committee
and joint legislative committee provide a list to the members of the General Assembly of all
employees who hold dual positions of state employment.

3.33. (LEG: Legislative Council Proofreaders) The Director of
the Legislative Council is authorized to have the staff proofreaders work one month before and
one month after the session.

3.34. (LEG: Study Committee - Education) A joint study
committee, consisting of three members of the House Ways and Means Committee appointed by
the Chairman of the House Ways and Means Committee, one member of the House Education
and Public Works Committee appointed by the Chairman of the House Education and Public
Works Committee, three members of the Senate Finance Committee appointed by the Chairman
of the Senate Finance Committee, one member of the Senate Education Committee appointed by
the Chairman of the Senate Education Committee, and three members appointed by the
Governor, shall study formula funding in education programs. The Chairman of the Senate
Finance Committee shall convene the initial meeting of the study committee. The formulas to be
studied include those utilized in Education Finance Act programs, the determination of the
Southeastern average teacher pay, and the funding of institutions of post-secondary education.
The State Board of Education, the State Board for Technical and Comprehensive Education, the
Commission on Higher Education and any institution of post-secondary education or school
district must provide the committee such information as the committee requests. The first
priority for committee study is the Education Finance Act including, but not limited to, the base
student cost, the index of taxpaying ability including specifically the impact of the emergence of
totally self-reliant school districts upon the formula and the annual inflation factor. The
expenses of the legislative members of the study committee shall be paid from the approved
accounts of their respective bodies. The expenses of the gubernatorial appointees shall be
absorbed within the Governor's office.

3.35. DELETED

3.36. (LEG: House/Senate Staff Outside Employment)
Full-time employees of the House of Representatives and the Senate are prohibited from outside
employment during normal working hours, except with the permission of an employee's
department head, and annual leave must be taken for any approved outside employment.

3.37. (LEG: Guardian Ad Litem Pgm. Technology Equipment)
Notwithstanding any other provision of law, or agency regulation, requirement or policy to the
contrary, the Guardian Ad Litem Program is authorized to procure necessary technology
equipment under the provisions and procedures set forth in Chapter 35 of Title 11 of the 1976
Code as amended.

3.38. (LEG: Dialup Facility) Upon review and approval by the
Council as provided in 3.16., Legislative Information Systems is authorized to charge fees for
the use of its Dialup Facility and to retain, use and carry forward these funds to be used only for
equipment and maintenance for this Facility.

3.39. (LEG: Leg. Council Combined Position) The Director of
the Legislative Council, with the approval of the Council, is authorized to combine two or more
stenographic, clerical, technical assistant, or administrative assistant positions into one with a job
description for the combined position to be approved by the Council, with a compensation level
also approved by the Council. The appropriations or any portion thereof for the positions
combined into one may be used to fund the combined position.

3.40. (LEG: Reorganization Comm. Publications Carry
Forward) The State Reorganization Commission shall provide a copy of all publications to each
member of the General Assembly, the Governor, and the Lieutenant Governor. The Commission
may also provide a copy of publications to state agency directors. The Commission may charge,
for additional copies, and other requests for publications, an amount to cover the cost of printing
and expenses of postage and shipping of publications. Revenue generated may be retained and
expended by the Commission to reimburse it for the printing of its publications and to pay the
expenses of postage and shipping. Any remaining balance in the sale of publications account
may be carried forward and expended for the same purpose.

3.41. (LEG: Sales Tax on Copies of Legislation) No sales tax is
required to be charged or paid on copies of or access to legislation or other informational
documents provided to the general public or any other person by a legislative agency when a
charge for these copies is made reflecting the agency's cost thereof. Funds received as revenue
from the sale of materials or as reimbursements for the cost of providing certain supplies or
services or refunds must be remitted to the State Treasurer as collected, but in no event later than
twelve (12) working days from the date of the receipt of any such funds.

3.42. (LEG: House Postage/Telephone Allocation) Any
member of the House who has not used all of his annual allocation for postage or all of his
annual allocation for telephone expenses may use the remaining funds in one category in the
other category during that year.

3.43. DELETED

3.44. (LEG: House Personnel BPI/Merit/Bonus Compensation)
Notwithstanding any limitation or other provisions of law to the contrary, the Speaker shall
authorize and allocate any base pay increase, merit pay or bonus among House staff in the
manner that the Speaker determines after consultation with the Operations and Management
Committee and the Chairmen of the standing committees of the House.

3.45. (LEG: General Assembly Exemption) Notwithstanding
any other provision of law or regulation, or any limitation or provision contained in this act, each
branch of the General Assembly is exempt from any provision which requires the approval of the
Budget and Control Board or any other executive branch agency for the expenditure,
management or transfer of any authorized appropriations.

3.46. (LEG: State House Renovation Schedule) The State
House Committee is authorized, beginning in July 1994 to establish schedules for the completion
of the State House Renovation project by January 1, 1997. General Services must submit to the
State House Committee, schedules that will accomplish these time frames. The General
Assembly will relocate to the Carolina Plaza for the 1996 and 1997 sessions. Work should begin
at such time so as to ensure the readiness of the Carolina Plaza for the 1996 and 1997 sessions of
the General Assembly. Upon the approval of these schedules by that Committee all current
tenants of the State House will be relocated to other space within the Capital Complex area.
Reassignment of space by the State House Committee must be completed prior to the completion
of the State House Renovation project.

3.47. (LEG: House Ethics Committee) The House of
Representatives Legislative Ethics Committee shall deposit revenues from penalties assessed by
the committee and copying of documents into the General Fund.

3.48. (LEG: Prohibit General Assembly Compensation - Felony
Conviction) No member of the General Assembly who has been convicted of a felony under
state or federal law or who has pled guilty or nolo contendere to these offenses may receive
compensation or reimbursable expenses provided for members of the General Assembly in this
act. However, this item does not apply to a person who has been pardoned under state or federal
law of the disqualifying felony.

4A.2. (JUD: County Offices For Judges) Every county shall
provide for each circuit and family judge residing therein an office with all utilities including a
private telephone, and shall provide the same for Supreme Court Justices and Judges of the Court
of Appeals upon their request.

4A.3. (JUD: Commitments to Treatment Facilities) The
appropriation for continued implementation of Article 7, Chapter 17, of Title 44 of the 1976
Code, Chapter 24 of Title 44 of the 1976 Code, and Chapter 52 of Title 44 of the 1976 Code,
relating to commitments, admissions and discharges to mental health facilities, or treatment
facility for the purpose of alcohol and drug abuse treatment, shall be expended for the
compensation of court appointed private examiners, guardians ad litem, and attorneys for
proposed patients, and related costs arising from the filing, service and copying of legal papers
and the transcription of hearings or testimony. Court appointed private examiners, guardians ad
litem and attorneys shall be paid at such rates or schedules as are jointly determined to be
reasonable by the South Carolina Association of Probate Judges, the State Court Administrator
and the South Carolina Department of Mental Health with the approval of the Attorney General.

4A.4. (JUD: Judicial Commitment) Except as otherwise
provided in Section 72.1., no money appropriated pursuant to Item VI, Judicial Commitment
shall be used to compensate any state employees appointed by the court as examiners, guardians
ad litem or attorneys nor shall such funds be used in payment to any State agency for providing
such services by their employees.

4A.6. (JUD: Special Judge Compensation) In the payment of
funds from "Contractual Services," and "Administrative Fund," that no
Special Judge shall be paid for more than a two week term within a fiscal year except that this
restriction will not apply in case of an ongoing trial.

4A.7. (JUD: Advance Sheet Revenues Deposit) The Judicial
Department must deposit in the General Fund of the State during the current fiscal year, all
advance sheet revenues, including any carried forward balance from prior years.

4A.8. (JUD: BPI/Merit) Judicial employees shall receive base
and average merit pay in the same percentages as such pay are granted to classified state
employees.

4A9. (JUD: Supreme Court Bar Admissions Carry Forward)
Any funds collected or carried forward from Supreme Court Bar Admissions in excess of the
amount required to be remitted to the General Fund may be carried forward and expended in the
current fiscal year for the benefit of the Bar Admissions unit.

4A.10. (JUD: Travel Reimbursement) State employees of the Judicial
Department traveling on official state business must be reimbursed in accordance with Section
72.32(J) of this Act.

4A.11. DELETED

C05 - SECTION 5 - ADMINISTRATIVE LAW JUDGE DIVISION

5.1. (ALJ: Copying Costs Revenue Deposit) The
Administrative Law Judge Division shall retain and expend, for the same purpose for which it is
generated, all revenue received during the current fiscal year as payment for printing and
distributing copies of court rules and other agency documents.

D21 - SECTION 6DD - GOVERNOR'S OFFICE

6DD.1. (GOV: OEPP - Grant Funds Carry Forward) Any
unexpended balance on June 30, of the prior fiscal year, in Subsection 6C of this Section
"Implementing Federal Programs" may be carried forward to the current fiscal year
and used for matching committed and/or unanticipated Grant Funds.

6DD.2. (GOV: OEPP - Mining Council Carry Forward) Any
unexpended balance on June 30, of the prior fiscal year of funds, not to exceed $2,000,
appropriated under Section 6C I Special Items: Mining Council may be carried forward and
expended for this same purpose in the current fiscal year.

6DD.3. (GOV: OEPP - Developmental Disabilities Program)
The South Carolina Developmental Disabilities Program of the Office of the Governor, Office of
Executive Policy and Programs is authorized to provide aid to sub-grantees for projects and
services to benefit persons with developmental disabilities. The intent of this provision is not to
duplicate other State Agency programs which are considered the legal and programmatic
mandate of existing State agencies, but rather to fill gaps that exist in the state service delivery
system related to his target population as identified and addressed in the Developmental
Disabilities State Plan.

6DD.4. (GOV: OEPP - Development Disabilities Case
Coordination System) $112,559, less any pro rata share adjustment of any mandated base
budget reduction, of the sums appropriated under OEPP, Allocations to Other State Agencies
must be for the South Carolina Development Disabilities Case Coordination System.

6DD.5. (GOV: OEPP - CCRS Evaluations & Placements)
The amount appropriated in this Section under Special Items Children's Case Resolution System
for Private Placement of Handicapped School-Age Children must be used for expenses incurred
in the evaluation of children referred to the CCRS to facilitate appropriate placement and to pay
up to forty percent when placement is made in-state and up to thirty percent when placement
must be made out-of-state of the excess cost of private placement over and above one per pupil
share of state and local funds generated by the Education Finance Act, and the one per pupil
share of applicable federal funds; provided it has been established that all other possible public
placements are exhausted or inappropriate. The balance of funding responsibility necessary to
provide the child with services must be determined by the Children's Case Resolution System
(CCRS) and apportioned among the appropriate public agencies on the basis of the reasons for
the private placement. When the amount appropriated in this section is exhausted, the funding
responsibility must be apportioned according to the procedures of the CCRS.

6DD.6. (GOV: SLED - Special Account Carry Forward) Funds
awarded to the State Law Enforcement Division by either court order or from donations or
contributions shall be deposited in a special account with the State Treasurer, and shall be
carried forward from year to year, and withdrawn from the Treasurer as needed to fulfill the
purposes and conditions of the said order, donations or contributions, if specified, and if not
specified, as may be directed by the Chief of the State Law Enforcement Division. Funds
expended from the special account must be annually reported by October 1st to the Senate
Finance Committee and the Ways and Means Committee.

6DD.7. (GOV: SLED - Computer/Communications Center
Carry Forward) Revenue generated from the operation of the Division's criminal justice
computer/communications center and not expended during the prior fiscal year may be carried
forward and expended for the same purpose during the current fiscal year.

6DD.8. (GOV: SLED - Criminal Record Search Fee) The State
Law Enforcement Division is hereby authorized to charge, collect and carry forward a fee, not to
exceed $25 each, for criminal record searches conducted pursuant to Regulations contained in
Chapter 73, Article 3, Subarticle 1 of the Code of State Regulations. Any such fees shall be
retained and used for agency operations.

6DD.9. (GOV: SLED - Revenue Carry Forward)
Notwithstanding any other provision of law, all revenue generated by SLED from the sale of
vehicles, various equipment, gasoline and insurance claims during the prior fiscal year may be
retained carried forward and expended for the purpose of purchasing like items.

6DD.10. DELETED

6DD.11. (GOV: SLED - Agents Operations Carry Forward)
Any unexpended balance on June 30, of the prior fiscal year, in subsection 6B of the Section
"Agents Operations" may be carried forward and expended for the same purpose in
the current fiscal year.

6DD.12. (GOV: OEPP - CCRS Significant Fiscal Impact) In
accordance with Section 20-7-5240 (e) of the 1976 Code, "significant fiscal impact"
in the current fiscal year shall be defined for each designated agency as the greater of (1) funds
appropriated by the General Assembly for the current fiscal year on cases referred to, decided or
placed through the Children's Case Resolution System or (2) that agency's assigned shares in the
current fiscal year of five cases decided by the Children's Case Resolution System.

6DD.13. (GOV: SLED - Match for Federal Grants Carry
Forward) State appropriations to SLED that are required to provide match for federal grant
programs in the prior fiscal year may be carried forward into the current fiscal year and
expended for the same purpose as originally appropriated.

6DD.14. (GOV: SLED-Night Telephone Operators
Accommodations) The State Law Enforcement Division is hereby authorized to provide
accommodations/utility service without any charge to night telephone operators.

6DD.15. (GOV: SLED - Clothing Allowance) The State Law
Enforcement Division is hereby authorized to provide agents and criminalists with an annual
clothing allowance (on a pro rata basis) not to exceed $400 per agent/criminalist for required
clothing used in the line of duty.

6DD.16. (GOV: SLED - Witness Fee) The State Law
Enforcement Division is hereby authorized to charge a witness fee of $100.00 per hour up to
$400.00 per day for each criminalist testifying in civil matters which do not involve the State as
a part in interest. This fee shall be charged in addition to any court prescribed payment due as
compensation or reimbursement for judicial appearances and deposited into a designated revenue
account.

6DD.17. (GOV: Governor's Office Budget) All other provisions
of law notwithstanding, the Office of Executive Policy and Programs section, the Executive
Control of State section and Mansion and Grounds section shall be treated as a single budget
section for the purpose of transfers and budget reconciliation.

6DD.18. (GOV: SLED - RAID Team) Membership of the
Retaliation Against Illegal Drugs (RAID) Team and all expenses thereto shall be comprised only
of law enforcement agents of the State Law Enforcement Division.

6DD.19. (GOV: Victim Advocate Policy Committee) The
policy committee appointed pursuant to Section 79.3 of the 1988-89 General Appropriations Act
is hereby continued for the purpose of monitoring the implementation of the guidelines
developed by it, making such revisions as appear appropriate, assisting and advising the director
in development and revision of forms, information and criteria used to evaluate compliance with
the guidelines by victim advocate programs in solicitor's offices.

The information gathered from these programs shall be aggregated by the
director into the annual report of the agency which is submitted to the Governor, Speaker of the
House of Representatives and the President of the Senate.

6DD.20. (GOV: Victim Assistance Programs) It is the intent of
the General Assembly that the amounts appropriated in this section for victim assistance
programs in solicitors' offices shall be in addition to any amounts presently being provided by
the county for these services and may not be used to supplant funding already allocated for such
services. Any reduction by any county in funding for victim assistance programs in solicitors'
offices shall result in a corresponding decrease of state funds provided to the solicitors' office in
that county for victim assistance services. Each solicitor's office shall submit an annual financial
and programmatic report which describes the use of these funds. The report shall be submitted
to the Governor, the Attorney General, the Chairman of the Senate Finance Committee and the
Chairman of the House Ways and Means Committee on October 1, for the preceding fiscal year.

6DD.21. (GOV: Establish Victim/Witness Program) The funds
appropriated in this section for Victim/Witness Program must be equally divided among the
judicial circuits, less any adjustments made for budget reductions. The funds for each circuit
must be distributed to the solicitor's office of that circuit and only used by the solicitor for the
purpose of establishing a Victim/Witness Program in the circuit which shall provide, but not be
limited to, the following services:

(1) Make available to victims/witnesses information concerning
their cases from filing in general sessions court through disposition.

(2) Keep the victim/witness informed of his rights and support
his right to protection from intimidation.

(3) Inform victims/witnesses of and make appropriate referrals
to available services such as medical, social, counseling, and victims' compensation services.

(4) Assist in the preparation of victims/witnesses for court.

(5) Provide assistance and support to the families or survivors of
victims where appropriate.

(6) Provide any other necessary support services to
victims/witnesses such as contact with employers or creditors.

(7) Promote public awareness of the program and services
available for crime victims.

The funds may not be used for other victim-related services until the above
functions are provided in an adequate manner.

6DD.22. (GOV: Victim/Witness Program Formula Distribution)
If funds in the South Carolina Victims' Compensation Fund exceed the amount required to
operate the State Office of Victims Assistance and pay claims of crime victims the first $650,000
of such excess must be used for Victim/Witness Programs by distribution to Judicial Circuits
based on a formula and criteria developed by the Policy Committee, and otherwise subject to
requirements of Section 6DD.20 and 6DD.22.

6DD.23. (GOV: Physical Abuse Examinations) Of the funds
appropriated in this section for Victims' Rights, up to $60,000 may be expended for physical
abuse examinations.

6DD.24. (GOV: SLED-ABC Enforcement-Confiscated
Alcoholic Beverage Revenue) The State Law Enforcement Division is directed to maintain
adequate records accounting for the receipt of funds from the sale of confiscated alcoholic
beverages. Such revenue shall be deposited to the credit of the General Fund of the State after
deducting the cost of confiscation and sale.

6DD.25. (GOV: Veterans' Affairs-Aid to Counties) In the
allocation of the appropriation in this section as adjusted for "Aid to Counties--Operation
of County Office," each county shall receive an effective annual amount equal to 100% of
the amount allocated to it for the prior fiscal year plus an amount equivalent to base pay
increases for state employees, less any adjustments made for budget reductions.

6DD.27. (GOV: Division of Women - Donations &
Contributions) The Division of Women is authorized to accept donations and contributions to
provide services as authorized by state law. Such funds are to be deposited in a special account
with the State Treasurer and shall be carried forward from year to year, and withdrawn from the
Treasurer as needed to fulfill the purposes and conditions of the said donations or contributions,
if specified, and if not specified, as may be approved by the Division of Women. State
appropriations will not supplement those services funded by donations or contributions.

6DD.28. (GOV: Division of Women - Revenue Carry Forward)
The Division of Women may retain funds received from luncheon fees and souvenir sales for
general operating expenses. Any unexpended revenue from these sources may be carried
forward into the current fiscal year to be expended for the same purposes.

6DD.29. (GOV: Foster Care - Reduction in Funds Separation)
In recognition of the fact that the funds appropriated for the Division of Foster Care contain both
funds appropriated for use by the Division Review System and "pass through" funds
designated for use by the South Carolina Protection and Advocacy for the Handicapped, any
reduction in funds appropriated for either shall be calculated based upon the separate funds for
the respective entities rather than based upon the combined budget of the two organizations.

6DD.30. (GOV: Foster Care - Private Foster Care Reviews)
The Division of Foster Care is authorized to restructure its programs, including but not limited
to, suspending reviews of children privately placed in private foster care and/or changing the
location of reviews of children in public foster care, to maintain continuous operations within
existing resources as dictated by recent budget reductions. These decisions must be based upon
the availability of existing funds. This provision supersedes any previous statutory or regulatory
mandate.

6DD.31. (GOV: Foster Care - Medicaid Eligible Children) It is
the intent of the General Assembly to ensure that placements of emotionally disturbed Medicaid
eligible individuals under the age of twenty-one in residential therapeutic treatment are
appropriate and that the level of care provided each child is offered in the least restrictive
environment appropriate to meet the child's treatment needs. The statutory powers and functions
of the Division of Foster Care are expanded to develop, implement, and manage a quality
assurance review system under contract with the Department of Health and Human Services.
This paragraph supersedes any previous statutory or regulatory mandate.

6DD.32. (GOV: Div. on Aging - State Match Funding Formula)
Of the state funds appropriated under "Distribution to Subdivisions", the first
allocation by the Division on Aging shall be for the provision of required State matching funds
according to the Division's formula for distributing Older Americans Act funds, based on the
official United States census data for 1990. The balance of this item, but not to exceed five
hundred thousand dollars ($500,000) shall be distributed equally to the planning and service
areas of the State. In the event State appropriations are reduced, reductions to the planning and
service areas shall be based on amounts distributed in accordance with the previous
requirements.

6DD.33. (GOV: Div. on Aging - State Matching Funds Carry
Forward) Any unexpended balance on June 30 of the prior fiscal year, of the required State
matching funds allocation, of the amount appropriated in this section under Distribution to
Subdivisions, shall be carried forward in the current fiscal year to be used as required state
matching funds for Federal funds awarded to subdivisions on or before September 30 of the
current fiscal year.

6DD.34. (GOV: Div. on Aging - Recycle Program) The
Division on Aging is hereby authorized to collect, expend, and carry forward not more than
$1,000 in revenues from the sale of items to be recycled.

6DD.35. (GOV: Div. on Aging - Registration Fees) The
Division on Aging is authorized to receive and expend registration fees for educational, training,
and certification programs.

6DD.36. (GOV: OEPP - Federal, Other Flow Through Funds)
In order to complete projects begun in a prior fiscal year, the Governor's Office is authorized to
expend Federal and Earmarked Funds in the current fiscal year for expenses incurred in the prior
fiscal year.

6DD.37. (GOV: Div. on Aging - Alzheimer's Matching Grants)
Of the funds appropriated herein for Alzheimers, grants awarded to assist communities and
entities in addressing problems relative to Alzheimer's disease and other related disorders must
be matched with additional funds or in-kind contributions by the community or other entity equal
to the amount of funds awarded in the grant.

6DD.41. (GOV: Div. on Veteran's Affairs - Veteran's Roster)
The funds appropriated to the Division of Veteran's Affairs as "Special Item-Veteran's Roster"
must be used in accordance with Part II, SECTION 73 of Act 164 of 1993, for the preparation,
printing, and publication of a complete roster of all South Carolina soldiers, sailors, marines,
airmen, and all other military personnel who entered the services of the United States in the
Korean Conflict, the Vietnam Conflict, and Operation Desert Storm.

6DD.42. (GOV: SLED - Vehicle Theft Unit) The funds
expended for the operation of the Vehicle Theft Unit authorized in item 4 of Section 6B of Part
IA may be used to inspect a junkyard, scrap metal processing facility, salvage yard, repair shop,
licensed business buying, selling, displaying, or trading new and used motor vehicles or parts of
motor vehicles, parking lots, and public garages, or a person dealing with salvaged motor
vehicles or parts of them.

The physical inspection must be conducted while an employee or owner is
present and must be for the purpose of locating stolen motor vehicles or investigating titling or
registration of motor vehicles wrecked or dismantled.

E08 - SECTION 8 - SECRETARY OF STATE'S OFFICE

8.1. (SS: Records Fee/Computer & Telephone Equipment)
The Secretary of State may establish and collect fees not to exceed the actual cost of searching
for or making copies of records. Such records shall be furnished at the lowest possible cost to
the person requesting the records. The Agency may retain these funds for the purposes of
purchasing and maintaining computer and telephone facsimile equipment. The Agency may
charge a reasonable hourly rate for making records available to the public and require a
reasonable deposit of such costs prior to searching for or making copies of the records.

8.2. (SS: Insufficient Check Recovery Fines/Retention and
Carry Forward) The Secretary of State may establish, collect and retain fines to recover the
costs associated with the collection of dishonored checks returned to this Agency due to
insufficient funds. Such funds shall be retained and expended by this Agency in accordance with
this purpose and any unused amount shall be carried forward.

E12 - SECTION 9 - COMPTROLLER GENERAL'S OFFICE

9.1. (CG: Signature Authorization) The Comptroller General is
hereby authorized to designate certain employees to sign, in his stead, warrants drawn against the
State Treasurer and the State Treasurer is hereby authorized to accept such signatures when
notified by the Comptroller General. This provision shall in no way relieve the Comptroller
General of responsibility.

9.2. (CG: GAAP Implementation & Refinement) It is the
intent of the General Assembly to oversee the conversion of the financial statements issued for
the State of South Carolina and these financial statements shall be in conformance with
Generally Accepted Accounting Principles (GAAP) by the earliest possible date. To this end,
the Comptroller General is directed, as the State Accounting Officer, to proceed with the
implementation and refinement of the Statewide Accounting and Reporting System (STARS) so
as to develop a reporting system that will result in the preparation of the official financial reports
for the State of South Carolina by the State Accounting Officer in conformance with Generally
Accepted Accounting Principles (GAAP). The Comptroller General, as the State Accounting
Officer, is given full power and authority to issue accounting policy directives to State agencies
in order to comply with Generally Accepted Accounting Principles. The Comptroller General is
also given full authority to conduct surveys, acquire consulting services, and implement new
procedures required to fully implement Generally Accepted Accounting Principles under the
oversight of the General Assembly.

9.3. (CG: Out-of-State Promotional Activities Expenses) The
Comptroller General may approve warrants for the payment of expenses for out-of-state
promotional activities only when, in his opinion, such expenses are related to economic
development in South Carolina.

9.4. (CG: Payroll Deduction Processing Fee) There shall be a
fee for processing payroll deductions, not to exceed 5 cents, for insurance plans, credit unions,
deferred compensation plans and professional associations per deduction per pay day. Proceeds
shall be remitted to the General Fund of the State. This fee shall not be applied to charitable
deductions.

10.1. (TREAS: Nat'l. Forest Fund - Local Gov't. Compliance)
In order to conform to federal requirements local governments receiving distributions of
National Forest Fund revenues are required to report annually to the State Treasurer indicating
compliance with authorized purposes.

10.2. (TREAS: STARS Approval) Decisions relating to the
Statewide Accounting and Reporting System (STARS) which involve the State Treasurer's
Banking Operations and other functions of the State Treasurer's Office shall require the approval
of the State Treasurer.

10.3. (TREAS: Investments) The State Treasurer may pool
funds from accounts for investment purposes and may invest all monies in the same types of
investments as set forth in Sections 11-9-660 and 11-9-661.

10.4. (TREAS: General Reserve Fund Transfer) The State
Treasurer's Office is authorized to transfer $3,373,537 of General Funds to the General Reserve
Fund on July 1, 1997, to comply with Article III, Section 36 of the Constitution. This amount of
General Funds must be replaced as the first priority of any FY 1996-97 surplus.

10.5. (TREAS: Management Fees) The State Treasurer is
authorized to charge a fee for the operating and management costs associated with the Local
Government Investment Pool, and the Deferred Compensation Program, and is further
authorized to retain and expend the fees to provide these services. The fees assessed may not
exceed the cost of the provision of such services.

10.6. DELETED

E20 - SECTION 11 - ATTORNEY GENERAL'S OFFICE

11.1. (AG: Collection of Debts, Claims or Obligations) The
Attorney General is hereby authorized to contract for the collection of debts, claims or
obligations due to the State, or any of its departments or institutions.

11.2. (AG: Hiring of Attorneys) No department or agency of
the State Government shall hire any classified or temporary attorney as an employee except upon
the written approval of the Attorney General and at a compensation approved by him. All such
attorneys shall at all times be under the supervision and control of the Attorney General except
as otherwise provided by law unless obtaining prior approval by the Budget and Control Board.

11.3. (AG: Engage Attorney on Fee Basis) No department or
agency of the State Government shall engage on a fee basis any attorney at law except upon the
written approval of the Attorney General and upon such fee as shall be approved by him. This
shall not apply to the employment of attorneys in special cases in inferior courts where the fee to
be paid does not exceed two hundred fifty ($250.00) dollars or exceptions approved by the
Budget and Control Board.

11.4. (AG: Printing of Opinions & Index) The Attorney
General is authorized to print for public sale, copies of his published opinions and index thereto
at such charges as are established by the state printer, in accordance with the cost of the
documents plus a twenty-five percent surcharge. All proceeds from the sale of copies of
opinions or indices shall be remitted to the general funds of the State and a full accounting kept
thereof.

11.5. (AG: Asbestos Abatement Litigation) The Attorney
General shall report to the Senate Finance and Ways and Means Committees on the status of that
office's Asbestos Abatement Litigation.

11.6. (AG: State Grand Jurors Subsistence) Jurors of the state
grand jury shall receive daily subsistence expense equal to the maximum allowable by regulation
of the Internal Revenue Code for the Columbia area when summoned or serving and be paid the
same per diem and mileage as are members of state boards, commissions, and committees.

11.8. (AG: Litigation Expense) Notwithstanding any other
provision of law, the Office of the Attorney General may obtain reimbursement for its costs in
representing the State in criminal proceedings and in representing the State and its officers and
agencies in civil and administrative proceedings. These costs may include, but are not limited to,
travel expenditures, depositions, printing, transcripts, and personnel costs. Reimbursement of
these costs may be obtained by the Office of the Attorney General from the budget of an agency
or officer that it is representing or from funds generally appropriated for legal expenses with the
approval of the Budget and Control Board.

11.9. DELETED

E21 - SECTION 12 - PROSECUTION COORDINATION

COMMISSION

12.1. (PCC: Solicitor Salary) The amount appropriated in this
section for salaries of Solicitors shall be paid to each full-time Solicitor.

12.3. (PCC: Judicial Circuits State Support) The amount
appropriated and authorized in this section for Judicial Circuits (16) State Support shall be
apportioned among the circuits on a per capita basis and based upon the official census of 1990.
Payment shall be made as soon after the beginning of the first and third quarter as practical.

12.4. (PCC: Solicitor Carry Forward) Any unexpended balance
on June 30, of the prior fiscal year, may be carried forward into the current fiscal year and
expended for the operation of the Solicitor's office relating to operational expenses.

12.5. (PCC: Solicitor's Office - County Funding Level) It is the
intent of the General Assembly that the amounts appropriated for solicitors' offices shall be in
addition to any amounts presently being provided by the county for these services and may not
be used to supplant funding already allocated for such services without any additional charges.

12.6. (PCC: Serious Offenses Funding) It is the intent of the
General Assembly that more than 50% of the funds for Judicial Circuits-State Support which
exceeds the amount appropriated by the General Assembly in FY 1995-96, must be utilized for
the expeditious disposition of "most serious offenses" and "serious
offenses" as defined by S.C. Code Section 17-25-45.

E23 - SECTION 14 - INDIGENT DEFENSE, COMMISSION ON

14.1. (INDEF: Defense of Indigents Formula) The amount
appropriated in this section for "Defense of Indigents" shall be apportioned among
counties in accord with Section 17-3-70, 1976 Code, but on a per capita basis and based upon the
official United States Census for 1990. The level of contribution of each county as of July 1,
1992, must be maintained. No county shall be permitted to contribute less money than the
amount the county contributed as of July 1, 1992. Within the amount of money established for
indigent defense services, the State shall set aside $2,750,000 (Death Penalty Trial Fund)
annually exclusively for use of the defense in capital cases pursuant to Section 16-3-26 of the
1976 Code, and for the expenses of the operation of the Commission on Indigent Defense. The
State also shall set aside $1,000,000 annually to pay fees and expenses of private counsel
appointed in non-capital cases pursuant to Section 17-3-50 (Conflict Fund). Of the funds
generated from the surcharge imposed pursuant to Section 14-1-213 of the 1976 Code, and from
the fees imposed under Sections 14-1-206(C)(4), 14-1-207(C)(6) and 14-1-208(C)(6) and the
application fee provided in Section 17-3-30(B), on a monthly basis, 50% must be deposited into
the Death Penalty Trial Fund, 15% must be deposited into the Conflict Fund until each of these
funds has received the required level of deposit, and the remaining funds each month must be
apportioned among the counties' public defender offices pursuant to Section 17-3-70. When
either the Death Penalty Trial Fund or the Conflict Fund has been fully funded, the monthly
revenue being set aside for that fund will be directed to the other fund until it is completely
funded. Upon complete funding of both the Death Penalty Trial Fund and the Conflict Fund, all
revenue collected pursuant to Section 14-1-213 and Sections 14-1-206(C)(4), 14-1-207(C)(6),
14-1-208(C)(6), and 17-3-30(B) must be apportioned among the counties' public defender offices
pursuant to Section 17-3-70. At the end of each fiscal year, any funds remaining in the Conflict
Fund shall be treated as provided in Section 17-3-330(B). At the end of each fiscal year any
leftover funds shall carryover to the next fiscal year. All applications for the payment of fees
and expenses in capital cases shall be applied for from the Death Penalty Trial Fund which shall
be administered by the Commission on Indigent Defense. All applications for the payment of
fees and expenses of private counsel or expenses of public defenders pursuant to Section 17-3-50
shall be applied for from the Conflict Fund administered by the Office of Indigent Defense.

14.2. (INDEF: State Employee Compensation Prohibited)
Except as otherwise provided in Section 72.1., no money appropriated pursuant to Defense of
Indigents shall be used to compensate any state employees appointed by the court as examiners,
guardians ad litem or attorneys nor shall such funds be used in payment to any State agency for
providing such services by their employees.

E24 - SECTION 15 - ADJUTANT GENERAL'S OFFICE

15.1. (ADJ: Tuition Assistance Program) Funds received from
students who failed to enroll or withdraw from programs under the Tuition Assistance Program
may be deposited in the Tuition Assistance Program Appropriation Account and expended for
the same purpose as the original appropriation.

15.2. (ADJ: Unit Maintenance Funds) Notwithstanding any
other provision of law, the funds appropriated as unit maintenance funds shall be distributed to
the various National Guard units at the direction of the Adjutant General.

15.3. (ADJ: Revenue Collections) All revenues collected by
National Guard units from county and city appropriations, vending machines, rental of armories,
court martial fines, federal reimbursements to armories for telephone expenses, and other
collections be retained and expended in its budgeted operations.

15.4. (ADJ: Rental Fee for Election Purposes) The maximum
fee that an armory may charge for the use of its premises for election purposes shall be the cost
of providing custodial services, utilities and maintenance.

15.5. (ADJ: Parking Lot Revenues) Notwithstanding other
provisions of this Act, as a security measure for the State Military Department's headquarters
building and grounds, the Adjutant General may control and contractually lease the headquarter's
building parking facilities, during events at the University of South Carolina's Williams-Brice
Stadium, to a state chartered and federally recognized 501(c)(4) tax exempt agency employees'
association who may then sub-lease individual parking spaces. Such a contract must require the
employees association to obtain liability insurance against wrongful death or injury. The
contract must clearly hold the Adjutant General's Office, its officers, and the State of South
Carolina harmless from any liability resulting from the use of the parking lot when rented by the
employees association. In addition, the contract must specify that the State of South Carolina's
Military Department shall receive no less than thirty-three percent of the gross profits from the
sub-leasing of the parking spaces. The contract must allow the State to audit the employees
association's funds. Funds at the Adjutant General's Office derived wholly from the rental of
Adjutant General's headquarters' parking lot may be retained at the Adjutant General's Office,
but may not be used for employee prerequisites.

15.6. (ADJ: State Guard Uniforms) Any element of the Militia
of this State may be uniformed in such surplus uniforms as may be made available to this State,
except that the insignia of the United States shall be removed and for it shall be substituted
distinctive insignia of the State of South Carolina.

15.7. (ADJ: Armory Rental Program) The Adjutant General is
authorized to develop and implement an armory rental program to recoup costs associated with
the use of armories by state agencies or other non-Guard organizations. The rental program must
be uniform in its application to the maximum extent possible. Funds generated by this program
may be retained and expended for armory maintenance and operations.

15.8. (ADJ: Emergency Preparedness) Of the funds
appropriated in the amount of $473,500 to the Adjutant General for Emergency Preparedness
due to the potential loss of Federal Funds, in the event that the Federal Funds are received
appropriated funds shall lapse to the General Fund.

15.9. (ADJ: Meals in Emergency Operations Centers) The cost
of meals may be provided to state employees who are required to work at the State Emergency
Operations Centers during actual emergencies and emergency simulation exercises when they
are not permitted to leave their stations.

15.10. (ADJ: Educational Seminar Revenue) All revenue
earned from educational seminars shall be retained by the agency to be used for the printing of
materials and other expenses related to conducting the seminars. The balance of funds shall be
reported annually to the General Assembly.

E28 - SECTION 16 - ELECTION COMMISSION, STATE

16.1. (ELECT: County Registration Board and County Election
Commission Compensation) The amounts appropriated in this section for "County
Registration Board Members and County Election Commissioners," shall be disbursed
annually to the County Treasurer at the rate of $1,000 for each member, not to exceed $10,000
per county. The County Treasurer shall use these funds only for the compensation of County
Registration Board Members and County Election Commissioners. Any funds not used for this
purpose shall be returned to the State Treasurer. These funds are exempted from mandated
budget reductions. In addition, in the calculation of any across the board agency base reductions
mandated by the Budget and Control Board or the General Assembly, the amount of funds
appropriated for compensation of County Registration Board Members and County Election
Commissioners shall be excluded from the agency's base budget.

16.2. (ELECT: Elections Managers & Clerks Per Diem)
Managers and clerks of state and county elections shall receive a per diem of $35.00; but
managers shall not be paid for more than two days for any election and clerks for not more than
three days for any election. The Commission may adjust the per diem of $35.00 for the
managers and clerks of the statewide election to a higher level only to the extent that the
appropriation for the statewide election is sufficient to bear the added cost of increasing the per
diem and the cost of the statewide election.

16.3. (ELECT: Board of State Canvassers Compensation)
$100.00 additional compensation per day may be paid to each member of the Board of State
Canvassers up to a total of 15 days that may be required for hearings held by the members of the
Board of State Canvassers.

16.4. (ELECT: Sale of Lists Revenue Carry Forward) Any
revenue generated from the sale of election lists may be retained and expended by the South
Carolina Election Commission to reimburse the State Budget and Control Board, Division of
Operations, for the printing of such lists and to pay expenses of postage and shipment of these
lists to electors who purchase them. After such reimbursement has been made an amount, not to
exceed $220,000, shall be used for non-recurring expenses in conjunction with Act 248 of 1991,
the Ethics, Government Accountability, and Campaign Reform Act and in conjunction with
extraordinary special election and legal costs. Any balance in the Sale of Lists Account on June
30, of the prior fiscal year may be carried forward and expended for the same purposes during
the current fiscal year.

16.5. (ELECT: Budget Reduction Exemption) Funds
appropriated for non-recurring general and primary election expenses are exempted from
mandated across the board reductions. In addition, in the calculation of any across the board
agency base reductions mandated by the Budget and Control Board or the General Assembly, the
amount of funds appropriated for non-recurring primary and general election expenses shall be
excluded from the agency's base budget.

16.6. (ELECT: Primary Election Carry Forward) Filing Fees
received from candidates filing to run in statewide or special primary elections may be retained
and expended by the State Election Commission to pay for the conduct of primary elections.
Any balance in the filing fee accounts on June 30, of the prior fiscal year may be carried forward
and expended for the same purposes during the current fiscal year. In addition, any balance in
the Primary Election Accounts on June 30, of the prior fiscal year may be carried forward and
expended for the same purposes during the current fiscal year.

16.7. (ELECT: Automated Voting Systems Carry Forward)
Funds provided to the agency as state match for purchasing automated voting systems shall be
carried forward to be expended for the same purposes in the current fiscal year.

16.8. (ELECT: Training & Certification Program) All
members and staff of County Boards of Voter Registration and County Election Commissions
will receive a common curriculum to include core courses on the duties and responsibilities of
county registration boards and county election commissions and electives to promote quality
service and professional development. Up to $35,000 of revenue generated by charging a fee to
attend these courses may be retained and expended by the South Carolina Election Commission
to help cover the cost of providing the training. Any balance in the training and certification
account on June 30, of the prior fiscal year may be carried forward and expended for the same
purpose during the current fiscal year.

16.9. (ELECT: General Election Carry Forward) Up to
$200,000 in funds appropriated for the 1996 General Election may be carried forward and used
to help defray the costs of conducting the November 1997 Special Elections for the State Senate
and the State House of Representatives.

F05 - SECTION 17A - BUDGET AND CONTROL BOARD

EXECUTIVE DIRECTOR, DIVISION OF

17A.1. (BCB/DED: BA - Civil Contingent Fund -
Disbursements) Warrant requisitions for the disbursement of funds appropriated in this Section
shall be approved by the respective division heads. The Civil Contingent Fund, appropriated in
Subsection 17A of this Section shall be expended only upon unanimous approval of the State
Budget and Control Board, and upon warrant requisitions signed as directed by the State Budget
and Control Board, to meet emergency and contingent expense of the State Government. None
of the Civil Contingent Fund shall be used to increase the salary of any State employee.

17A.2. (BCB/DED: BA - Total Quality Management) It is the
intent of the General Assembly to adequately train the State's work force to enable agencies to
achieve their missions and to serve their customers. The Executive Director of the Budget and
Control Board will be responsible for coordinating the quality training effort for state
government agency heads, managers, and employees for the purpose of strategic planning,
leadership skills, team facilitator, supervision and customer service training. All employees
initially undergoing Total Quality Management training will receive a common curriculum, to
include the philosophy, teamwork training and problem solving techniques of Total Quality
Management. As the training functions progress, organizational plans for using the Total
Quality Management process will be drawn up and reviewed with agency heads, with action
teams subsequently being formed for improvements. Recognition of all progress made will be
consistently given. Funds shall be used to identify state agencies that are in direct contact with
the public and provide training that will ensure employees courteously and effectively meet
taxpayers' needs. The funds provided for quality training shall not be transferred to any other
program or used for any other purpose. Funds allocated for this purpose not expended in the
prior fiscal year may be carried forward to be expended in the current fiscal year. The State
Director of Total Quality Management is responsible for the development of a Quality Program
based on criteria used for the Malcolm Baldridge National Quality Award. State agency heads
should ensure that groups formed to develop solutions to administrative and managerial
problems will be selected to secure appropriate employee involvement and trained fully in
quality improvement tools and techniques.

17A.3. (BCB/DED: BA - Brandenburg Coordination
Committee) Of the $50,000 appropriated in this section for the Brandenburg Coordination
Committee, funds are to be spent in support of cultural, educational, agricultural, scientific,
governmental or business exchanges and agreements between South Carolina and the sister state
of Brandenburg, Germany and related German interests. The Executive Director of the Budget
and Control Board will submit an annual report to the Governor, the Chairmen of the Senate
Finance Committee and the House Ways & Means Committee detailing such activities.

17A.4. (BCB/DED: BA - Accounting System
Analysis-Interagency Study Committee) In consultation with the Governor, the Chairman of the
Senate Finance Committee and the Chairman of the Ways and Means Committee, the Executive
Director of the Budget and Control Board is authorized to appoint interagency study committees
to explore innovative solutions to administrative or managerial problems which are deemed to be
system-wide in their impact. The committees will be fully trained in quality management
problem-solving techniques and strategies. Funds appropriated for purposes of fostering
innovation in the Fiscal Year 1993-94 Supplemental Appropriation for the Office of Executive
Director, Budget and Control Board, Accounting System Analysis which are unexpended in the
preceding fiscal year may be carried forward to be used in the current fiscal year for the same
purpose.

17A.5. (BCB/DED: BA - Computer Services Consolidation) It
is the intent of the General Assembly to consolidate management of computing services and
computer support services under the Budget and Control Board. The Executive Director of the
Budget and Control Board shall develop a long-term strategic plan to accomplish this
consolidation and to centralize all State Data Centers. The Executive Director of the Budget and
Control Board, in consultation with the Governor, Chairman of the Senate Finance Committee
and the Chairman of the Ways and Means Committee, is authorized to implement the Data
Center Consolidation Plan as presented to and approved by the Chairman of the Senate Finance
Committee and the Chairman of the House Ways and Means Committee on January 15, 1997.
The plan is structured in phases with a final implementation date no later than July, 2001. All
agencies affected by this plan are required to comply with the directives and mandates inherent
in this planning document. The Legislature, Judiciary, higher education institutions and
technical education institutions are exempt from this proviso. An annual progress report on the
implementation of the plan shall be submitted to the Governor and the Chairmen of the Senate
Finance and House Ways and Means Committees.

17A.6. (BCB/DED: BA - EFA Litigation Carry Forward) Any
unexpended balance from the funds authorized and/or appropriated for EFA litigation in
previous fiscal years shall be carried forward to be expended in the same manner and for the
same purposes in the current fiscal year.

17A.7. (BCB/DED: BA - Year 2000 Date Change) It is the
intent of the General Assembly to address the issue of century date compliance on a statewide
basis to ensure the integrity of the state's information technology platforms and all of their
associated data and operations into and beyond the year 2000. The Executive Director of the
Budget and Control Board is directed to coordinate the assessment of century date compliance
across state agencies, and to develop a plan of action to ensure that all elements of state
government are in full century date compliance. All agencies are hereby directed to cooperate
with all requests relating to the development of this assessment and plan. As part of the effort,
the Board may enter any contractual arrangements it may deem appropriate for the purposes of
determining the scope of the "Year 2000 Date Change" problem at the state level. The Board
will provide an initial report as to the status of this undertaking and any proposed legislative
action to the Senate Finance and Ways and Means Committees no later than January 15, 1998.
Nothing herein will be construed as precluding any government agency or unit from proceeding
with its own approach to Year 2000 date compliance.

F07 - SECTION 17B - BUDGET AND CONTROL BOARD

OPERATIONS, DIVISION OF

17B.1. (BCB/DO: OGS - Procurement of Art Objects) Before
any governmental body, with the exception of the South Carolina Museum Commission, as
defined under the South Carolina Consolidated Procurement Code procures any art objects such
as paintings, antiques, sculptures, or similar objects above $1,000, the head of the Purchasing
Agency shall prepare a written determination specifying the need for such objects and benefits to
the State. The South Carolina Arts Commission shall review such determination for approval
prior to any acquisition.

17B.2. (BCB/DO: OGS - Real Property - Sale/Leaseback/
Repurchase Revenue Account) In order to ensure the stability of any sale/leaseback and
repurchase option agreement entered into by the State for any piece of real property, the Budget
and Control Board is directed to establish a separate and distinct account for the deposit of the
net proceeds of the sale or net annual charges derived from any such property. Any funds held in
such separate and distinct accounts shall only be used for the purpose of repurchasing the
property and/or the establishment of a reserve fund as outlined in the contract documents for the
property, until such time as the Agreements on the property are fulfilled. It is the intention of the
General Assembly to appropriate sufficient funds on an annual basis to enable the Budget and
Control Board to meet the required lease payments and other necessary expenditures associated
with any sale/leaseback agreement involving real property.

17B.3. (BCB/DO: OGS - Fleet Management Program) It is the
intent of the General Assembly that the Division of Operations establish a cost allocation plan to
recover the cost of operating the comprehensive statewide Fleet Management Program. The
Division shall collect, retain and carry forward funds to ensure continuous administration of the
program.

17B.4. (BCB/DO: OGS - Surplus Property Exemption) The
Division of Operations and law enforcement agencies may retain the proceeds from the sale of
surplus property for fleet replacement less the cost of disposition incurred by the Division of
Operations.

17B.5. DELETED

17B.6. (BCB/DO: OLG - Carry Forward - BCB Grant Program,
Special Projects & EPA Grant Match Funds) Funds appropriated under Section 17B,
Division of Operations, "Aid to Entities": Budget and Control Board Grant Program
Funds, Special Projects and EPA Grant Match Funds which are not expended in the prior fiscal
year may be carried forward to be expended in the current fiscal year. Of the Grant Funds
appropriated under the Division of Operations, $400,000 may be used for operating costs of the
Division in order to enhance the technical assistance capabilities of the Office of Local
Government.

17B.7. (BCB/DO: OLG - Carry Forward - State Water Pollution
Control Revolving Fund) If any funds accumulated by the Budget and Control Board, Division
of Operations from loan fees are not expended during the preceding fiscal years, such funds may
be carried forward and expended for the costs associated with conducting the State Revolving
Fund programs for wastewater or drinking water.

17B.8. (BCB/DO: OLG - State Water Pollution Control
Revolving Fund) In the event that any state funds remain after fully matching federal grants for
the State Revolving Funds under the Clean Water Act or Safe Drinking Water Act, such funds
may be deposited into the South Carolina Infrastructure Revolving Loan Fund established
pursuant to Section 11-40-50.

17B.9. (BCB/DO: OLG - Community Development Block
Grant) The funds appropriated on special line item "CDBG" are to provide funds for
meeting federal matching requirements for administrative costs incurred by the State in
administering program income funds received from federally funded economic development
grants.

17B.10. (BCB/DO: OLG - Carry Forward - BCB Infrastructure
Grant Fund) Funds appropriated in the Fiscal Year 1993-94 Supplemental Appropriation for the
Office of Local Government, Division of Operations, Infrastructure Grant Revolving Fund which
are unexpended in the preceding fiscal year may be carried forward to be used in the current
fiscal year for the same purpose of funding infrastructure projects in economically distressed
areas as provided for in Section 41-43-180 of the 1976 Code.

17B.11. (BCB/DO: OLG - Debt Service) Of the Grant Funds
appropriated under the Division of Operations, up to $420,000 may be expended for debt service
if funds are not made available for such purpose in this act or any act supplemental thereto.

17B.12. DELETED

17B.13. DELETED

F09 - SECTION 17C - BUDGET AND CONTROL BOARD

BUDGET & ANALYSES, DIVISION OF

17C.1. (BCB/DBA: OSB - Agencies Affected by Restructuring)
The Budget and Control Board is directed to work with affected State agencies in order to
phase-in operations of restructured organizations during Fiscal Year 1997-98. Restructured
organizations should be operating entirely under the revised structure not later than June 30,
1998. The Board is further directed to work with the affected agencies in order to identify and
facilitate the transfer of any portion of their operations, including transfer of funds, during Fiscal
Year 1997-98, which is affected by the restructured organization adopted by the General
Assembly, but which has not already been accomplished herein. Until sufficient changes can be
made to the State's accounting system and the appointment of appropriate agency heads, the
Comptroller General and the State Treasurer shall allow those agencies affected by restructuring
to continue processing documents within the account structure existing on June 30, 1997.
Restructured agencies shall make all the necessary accounting adjustments to complete the
transition to the new account structure as soon as possible, but no later than June 30, 1998.

17C.2. (BCB/DBA: OHR - Compensation - Agency Head
Salary) Notwithstanding any other provision of law in the event of an agency head vacancy, the
governing board of the agency or the Governor, must have the prior favorable recommendation
of the Agency Head Salary Commission to set, discuss or offer a salary for the agency head at a
rate that exceeds the minimum of the range established by the Agency Head Salary Commission.
The Budget and Control Board shall have final approval authority for agency head salaries.
Boards and Commissions of newly created agencies shall not offer a salary to a prospective
agency head until a salary range has been established and the salary approved by the Agency
Head Salary Commission. The funding for such purpose should come from resources within the
agency. The Agency Head Salary Commission shall recommend to the Budget & Control
Board salary increases for agency heads. No agency head shall be paid less than the minimum of
the pay range nor receive an increase that would have the effect of raising the salary above the
maximum of the pay range. Funding shall be provided for an amount equivalent to the pay
increase for all classified employees. Any remaining increases recommended by the Agency
Head Salary Commission shall be funded from the individual agency budget. All increases shall
be effective on or after October 1, of the current fiscal year.

In the event of a Technical College President vacancy, the appointing authority
must have prior favorable recommendation of the Agency Head Salary Commission to set,
discuss or offer a salary for Technical College Presidents at a rate that exceeds the midpoint of
the salary range. The Budget and Control Board shall have final approval authority for these
salaries.

17C.3. (BCB/DBA: OHR - Compensation - Reporting of
Supplemental Salaries) Any compensation, excluding travel reimbursement, from an affiliated
public charity, foundation, clinical faculty practice plan, or other public source or any
supplement from a private source to the salary appropriated for a state employee and fixed by the
State must be reported by the employee to the Division of Budget and Analyses of the Budget
and Control Board. The report must include the amount, source, and any condition of the
supplement. Any change in the amount, source, or condition must be reported to the division by
the employee.

17C.4. (BCB/DBA: OHR - Vacancy Report/Appropriations for
Compensation/Quarterly Allocations) In providing in this Act for compensation of state
employees, the General Assembly recognizes that a continuing minimum number of position
vacancies among state agencies is inevitable and that the full amount appropriated for employee
compensation will not likely be required. In order to provide for efficient administration and use
of such appropriations, the Budget and Control Board is authorized to require such periodic
reports from agencies as will reflect actual compensation requirements during the course of the
year and to allot to agencies on a quarterly basis such amounts of appropriations for
compensation as may be necessary to meet actual requirements only.

17C.5. (BCB/DBA: OHR - Employment Rights Affected by
Restructuring) Provided, that all State employees affected by the restructuring of State agencies
shall retain all present employment rights. Employees who are transferred or reassigned as a
result of restructuring who had attained permanent status as provided in the State Employee
Grievance Procedure Act of 1982, as amended, shall retain such rights. Employees in positions
not covered by the State Employee Grievance Procedure Act of 1982, as amended, who would
occupy positions subject to the Act after restructuring and who have more than six months
service as a State employee shall have grievance rights under the Act.

17C.6. (BCB/DBA: OHR - Agency Head Salaries Affected by
Restructuring) The salaries of Agency Directors affected by restructuring will be reviewed by
the Division of Budget and Analyses of the Budget and Control Board. The review by the
Division of Budget and Analyses will be submitted to the Agency Head Salary Commission and
the Budget and Control Board. The Agency Head Salary Commission shall recommend to the
Budget and Control Board any salary adjustments deemed appropriate for approval.

17C.7. (BCB/DBA: OHR - Compensation - Increase Eligibility)
Statewide elected officials, constitutional officers, temporary positions, whether full or part-time,
and agency heads, shall not be eligible for any compensation increases as provided in this Act
unless otherwise specified in this Act.

17C.8. (BCB/DBA: BEA - Membership, Compensation, Duties)
Notwithstanding the provisions of 11-9-820 of the 1976 Code, the Board of Economic Advisors
shall consist of the following members:

(1) one member, appointed by the Governor, who shall serve as
chairman and shall receive the sum of $10,000 annually;

(2) one member appointed by the Chairman of the Senate
Finance Committee who shall receive the sum of $8,000 annually;

(3) One member appointed by the Chairman of the Ways and
Means Committee of the House of Representatives who shall receive the sum of $8,000
annually;

(4) Director of the Department of Revenue and Taxation, ex
officio with no voting rights.

The appointed members shall serve at the pleasure of their appointors. The
Chairman of the Board of Economic Advisors shall report directly to the Budget and Control
Board to establish policy governing economic trend analysis. The Board of Economic Advisors
shall provide for its staffing and administrative support from funds appropriated by the General
Assembly.

The Executive Director of the Budget and Control Board shall assist the
Governor, Chairman of the Board of Economic Advisors, Chairman of the Senate Finance
Committee, and Chairman of the Ways and Means Committee of the House of Representatives in
providing an effective system for compiling and maintaining current and reliable economic data.
The Board of Economic Advisors is considered a public body under the provisions of Section
30-4-20(a) of the 1976 Code. The Board of Economic Advisors may establish an advisory board
to assist in carrying out its duties and responsibilities. All state agencies, departments,
institutions and divisions shall provide such information and data as the board may require.

17C.9. (BCB/DBA: BEA - Mid-Year Budget Reductions &
Restricting the Rate of Expenditures) Any appropriations made herein or by special act now or
hereafter, are hereby declared to be maximum, conditional and proportionate, the purpose being
to authorize expenditures not to exceed the amounts named herein, if necessary, but only in the
event the aggregate revenues available during the period for which the appropriations are made
are sufficient to pay them in full. The State Budget and Control Board is directed to survey the
progress of the collection of revenue and the expenditure of funds by all agencies, departments
and institutions. If the Budget and Control Board determines that a year-end aggregate deficit
may occur by virtue of a projected shortfall fall in anticipated revenues, it shall utilize such funds
as may be available and required to be used to avoid a year end deficit and thereafter take such
action as necessary to restrict the rate of expenditure of all agencies consistent with the
provisions of this section. No institution, activity, program, item, special appropriation, or
allocation for which the General Assembly has provided funding in any part of this Act shall be
discontinued, deleted, or deferred by the Budget and Control Board. Any reduction of rate of
expenditure by the Board, under authority of this Act, shall be applied as uniformly as may be
practicable except that no reduction shall be applied to funds encumbered by a written contract
with an agency not connected with the State Government. No such reduction shall be ordered by
the State Budget and Control Board while the General Assembly is in session without first
reporting such necessity to the General Assembly and the General Assembly has taken no action
to prevent the reduction within five statewide session days of formal written notification.

As far as practicable all departments, institutions, and agencies of the State are
hereby directed to budget and allocate appropriations as quarterly allocation so as to provide for
operation on uniform standards throughout the fiscal year and in order to avoid an operating
deficit for the fiscal year. It should be recognized that academic year calendars of state
institutions will affect the uniformity of the receipt and distribution of funds during the years.
The Comptroller General or the Office of State Budget shall make such reports to the Budget and
Control Board as they deem advisable on any agency which is expending authorized
appropriations at a rate which predicts or projects a general fund deficit for the agency. The
Budget and Control Board is authorized and directed to require any such agency, institutions or
department to file a quarterly allocations plan and is further authorized to restrict the rate of
expenditures of the agency, institution or department if the Board determines that a deficit may
occur. It is the responsibility of any such agency to develop a plan, in consultation with the
Budget and Control Board, that eliminates or reduces a deficit. Should the Budget and Control
Board make a finding that the cause of and likelihood of a deficit is unavoidable due to factors
which are wholly outside of an agency's control, then the Board may determine that the
recognition of an agency deficit is appropriate and shall notify the General Assembly of such
action or the presiding officer of the House and Senate if the General Assembly is not in session.
Upon receipt of such notification from the Budget and Control Board, the General Assembly
may authorize supplemental appropriations from any surplus revenues which existed at the close
of the previous fiscal year. If the General Assembly fails to take action, then the finding of the
Budget and Control Board shall stand, and the actual deficit at close of the fiscal year shall be
reduced as necessary from surplus revenues or surplus funds available at the close of the fiscal
year in which the deficit occurs and from funds available in the Capital Reserve Fund and
General Reserve Fund, as required by the Constitution. If the Budget and Control Board finds
that the likelihood and cause of a deficit is the result of agency management, then the bond of
State officials responsible for management of the agency involved shall be held liable therefor
and the Board shall notify the Agency Head Salary Commission of such finding. In the case of a
finding that a projected deficit is the result of the management of the agency, the Budget and
Control Board shall take immediate steps to curtail agency expenditures in such a manner so as
to bring expenditures in line with authorized appropriations and avoid a year end operating
deficit.

17C.10. (BCB/DBA: OHR - Compensation Increase -
Appropriated Funds Ratio) Appropriated funds may be used for compensation increases for
classified and unclassified employees and agency heads only in the same ratio that the
employee's base salary is paid from appropriated sources.

17C.11. (BCB/DBA: OHR - Vacant Positions) In the event that
any permanent position in an agency remains vacant for more than one year the position may be
deleted by the Budget and Control Board.

17C.12. DELETED

17C.13. (BCB/DBA: OHR - Employee Pay) The amounts
appropriated to the Budget and Control Board for Employee Pay Increase must be allocated by
the Board to the various state agencies to provide for employees pay increases in accordance
with the following plan:

1. With respect to classified employees, effective after July 1 of
the current fiscal year, the compensation of all classified employees shall be increased by 2.5%.

2. With respect to unclassified employees or unclassified
executive compensation system employees not elsewhere covered in this Act, effective after July
1 of the current fiscal year, each agency is authorized to allot the total funds for compensation
increases among individual employees without uniformity. The funds provided for
compensation increases for any employees subject to the provisions of this paragraph are based
on an annual average 2.5% increase. All of the salaries are subject to the provisions of Section
72.24 of Part IB of this Act and Office of Human Resources' approval must be obtained before
any employees subject to the provisions of this paragraph may be granted an annual pay increase
in excess of the guidelines established by the Budget & Control Board. Any employee
subject to the provisions of this paragraph shall not be eligible for compensation increases
provided in paragraphs 1, 3, 4, 5, 6 or 7.

3. With respect to agency heads covered by the Agency Head
Salary Commission, the Agency Head Salary Commission shall recommend to the Budget and
Control Board salary increases for agency heads. Agency head increases shall be effective after
July 1 of the current fiscal year. No agency head shall be paid less than the minimum of the pay
increase range nor receive a salary increase that would have the effect of raising the salary above
the maximum of the pay range.

4. Effective after July 1 of the current fiscal year, agency heads
not covered by the Agency Head Salary Commission, shall receive an annualized base pay
increase of 2.5%.

5. With respect to local health care providers, the funds
provided for compensation increases shall be based on an annual average 2.5% increase,
effective after July 1 of the current fiscal year.

6. Effective after July 1 of the current fiscal year, the Chief
Justice and other judicial officers shall receive a base pay increase of 2.5%.

7. Effective after July 1 of the current fiscal year, the
compensation of judicial employees not elsewhere covered in this act shall be increased by 2.5%.

17C.14. (BCB/DBA: OSB - Prior Year Shown in Appropriation
Bill) Effective on July 1 of the current fiscal year, the Appropriation Bill must show the prior
year's base budget in the appropriation budget format.

* 17C.15. (BCB/DBA: OHR - Pre-Approved Pay Plan)
Whenever funds are appropriated for the specific purpose of providing salary increases to state
employees, such funds may only be awarded to employees in the manner prescribed within the
applicable Appropriation Act or, if no plan for awarding the increases is specified, in accordance
with a plan pre-approved by the Division of Budget and Analyses of the Budget and Control
Board. The approved pay plan shall be reported to the Senate Finance and Ways and Means
Committees.

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

F27 - SECTION 17D - BUDGET AND CONTROL BOARD

AUDITOR'S OFFICE, STATE

17D.1. (BCB/AUD: Access of Records) Notwithstanding any
other provision of law, for the purposes of carrying out his duties, the State Auditor and his
assistants or designees shall have access to all records and facilities of every state agency during
normal operating hours. Furthermore, the State Auditor and his assistants or designees shall
have access to all relevant records and facilities of any private organization which is
appropriated state monies, relating to the management and expenditures of such funds, during the
organization's normal operating hours. In the performance of his official duties, the State
Auditor and his assistants or designees are subject to the statutory provisions and penalties
regarding the confidentiality of records of the respective agency, or organization, under review.
All audit working papers and memoranda of the State Auditor, with the exception of final audit
reports, are confidential and not subject to public disclosure.

17D.2. (BCB/AUD: Audit Timeframes) Notwithstanding any
other provision of law, the State Auditor may examine less often than annually agencies,
departments, commissions and divisions provided that every such agency, department,
commission or division shall be examined no less often than every third year.

17D.3. (BCB/AUD: Contracts for State Audits) In the event
qualified personnel cannot be hired during the current fiscal year, any unused personal service
funds in Subsection 17D, may be used to contract private firms to perform audits as prescribed
by the State Auditor.

17D.4. (BCB/AUD: Fraud Hot Line) The State Auditor is
directed to maintain a Fraud Hot Line, and provide statewide toll free telephone service for use
by citizens of this State to report incidences of waste, fraud, misuse, and abuse of state funds.
The State Auditor is further directed to advertise the Fraud Hot Line in an appropriate manner.

17D.5. (BCB/AUD: Medical Assistance Audit) The
Department of Health and Human Services shall remit to the General Fund an amount
representing fifty percent (allowable Federal Financial Participation) of the cost of the Medical
Assistance Audit as established in the State Auditor's Office of the Budget and Control Board
Section 17D such amount to also include appropriated salary adjustments and employer
contributions allowable to this program. Such remittance to the General Fund shall be made
monthly and based on invoices as provided by the State Auditor's Office of the Budget and
Control Board.

F29 - SECTION 17E - BUDGET AND CONTROL BOARD

RETIREMENT DIVISION

17E.1. (BCB/RET: Authorization to Pay For Data Processing
Services) The Retirement System is authorized to pay the Budget & Control Board -
Division of Executive Director from funds appropriated to contractual services a charge for data
processing services. The cost will be determined on an hourly basis and shall not exceed the
sum of $600,000.

17E.2. (BCB/RET: Retirement Benefits Limits Increase)
Notwithstanding any other provision of law, except as provided below, retirees and beneficiaries
under the State Retirement Systems receiving Medicaid (Title XIX) sponsored nursing home
care as of June 30, of the prior fiscal year shall receive no increase in retirement benefits during
the current fiscal year. However, a retired employee affected by the above prohibition may
receive the scheduled increase if he is discharged from the nursing home and does not require
admission to a hospital or nursing home within six months. The Department of Health &
Human Services, the Department of Social Services, and the State Retirement Systems must
share the information needed to implement this proviso.

17E.3. (BCB/RET: Retirement Contributions - Monthly
Transfers) Notwithstanding the amounts appropriated in Subsection 17F of this Section as
"State Employer Contributions," the State Treasurer and Comptroller General are
hereby authorized and directed to transfer from the General Fund of the State to the proper
Retirement System Accounts, month by month, during the current fiscal year, such funds as are
necessary to comply with the terms of the Retirement Act as amended, with respect to
contributions by the State of South Carolina to the Retirement System.

17E.4. (BCB/RET: Temporary Scientific Consultative
Employment) Any teacher or employee especially skilled in scientific knowledge and
attainment may be temporarily employed by any part of the government or any agency thereof in
a consultative capacity on a per diem compensation without such temporary consultative
employment in any way affecting, reducing or canceling his retirement benefits but such
temporary consultative employment shall not exceed six months in any one year.

17F.1. (BCB/EB: Benefits - Proportionate Payment) It is the
intent of the General Assembly that any agency of the State Government whose operations are
covered by funds from other than General Fund Appropriations shall pay from such other
sources a proportionate share of the employer costs of retirement, social security, workmen's
compensation insurance, unemployment compensation insurance, health and other insurance for
active and retired employees, and any other employer contribution provided by the State for the
agency's employees.

17F.2. (BCB/EB: Unemployment Compensation Account)
Unemployment Compensation premiums collected from state agencies will be deposited into a
separate account and used to pay Unemployment Compensation benefits to eligible employees of
the State. Premiums will be based on experience ratings provided by private consultants and the
Budget and Control Board. The Unemployment Compensation Funds' contribution level must be
reviewed no less than biennially to ensure that premiums are commensurate with the cost of
operating the Unemployment Compensation Fund. All interest earned on this account must be
retained by the Unemployment Compensation Fund and used to offset costs.

17F.3. (BCB/EB: Unemployment Compensation
Administration) The Budget and Control Board may hire consultants or a management firm to
assist in the administration of the unemployment compensation program for state employees and
for that purpose may use funds appropriated or otherwise made available for unemployment
payments. The Budget and Control Board is authorized to make such transfers as are necessary
to accomplish this purpose. The Budget and Control Board shall report annually to the General
Assembly in writing the complete name, address and amounts paid to any such consultants or
management firm.

17F.4. (BCB/EB: Unemployment Compensation Insurance
Claims) Notwithstanding the amounts appropriated in Subsection 17F of this Section as
"Unemployment Compensation Insurance" to cover unemployment benefit claims
paid to employees of the State Government who are entitled under Federal Law, the State
Treasurer and the Comptroller General are hereby authorized and directed to pay from the
General Fund of the State to the South Carolina Employment Security Commission such funds
as are necessary to cover actual benefit claims paid during the current fiscal year which exceed
the amounts paid in for this purpose by the various agencies, departments and institutions subject
to unemployment compensation claims. The Employment Security Commission shall certify
quarterly to the Budget and Control Board the State's liability for such benefit claims actually
paid to claimants who were employees of the State of South Carolina and entitled under Federal
law. The amount so certified shall be remitted to the Employment Security Commission.

17F.5. (BCB/EB: Workers' Compensation Insurance Claims)
Notwithstanding the amounts appropriated in Subsection 17F of this Section as "Workers'
Compensation Insurance" to cover Workers' Compensation benefit claims paid to
employees of the State Government who are entitled under State Law, the State Treasurer and
the Comptroller General are hereby authorized and directed to pay from the General Fund of the
State to the State Accident Fund such funds as are necessary to cover actual benefit claims paid
and expenses relating to the operations of the agency during the current fiscal year which exceed
the amounts paid in for this purpose by the various agencies, departments, and institutions. The
State Accident Fund shall certify quarterly to the Budget and Control Board the State's liability
for such benefit claims actually paid to claimants who are employees of the State of South
Carolina and entitled under State Law. The amount so certified shall be remitted to the State
Accident Fund.

F31 - SECTION 17G - BUDGET AND CONTROL BOARD

CAPITAL RESERVE FUND

17G.1. (BCB/CRF: Deficit Projected - Use of CRF) If the
Board of Economic Advisors revenue forecast to the Budget and Control Board at any time
during the current fiscal year projects that revenues for the current fiscal year will be less than
appropriated expenditures for this year, the Budget and Control Board in mandating necessary
cuts during the current fiscal year to eliminate the projected deficit must first reduce to the extent
necessary the appropriation herein contained to the Capital Reserve Fund, prior to mandating any
cuts in operating appropriations.

H03 - SECTION 18A - HIGHER EDUCATION, COMMISSION ON

18A.1. (CHE: Contract for Services Program Fees) The
amounts appropriated in this Section for "Southern Regional Education Board Contract
Programs" and "Southern Regional Education Board Dues" are to be used by
the Commission to pay to the Southern Regional Education Board the required contract fees for
South Carolina students enrolled under the Contract for Services program of the Southern
Regional Education Board, in specific degree programs in specified institutions and the Southern
Regional Education Board membership dues. The funds appropriated may not be reduced to
cover any budget reductions or be transferred for other purposes.

18A.2. (CHE: Desegregation Activities) Higher Education
institutions shall continue to support and fund desegregation activities within the allocations
made to each agency.

18A.3. (CHE: Grants for Programs in Other States) Of the
funds appropriated herein, not more than $25,000 may be used to make grants to South Carolina
residents enrolled in an accredited institution outside the State in a program (a) not offered in
South Carolina, or (b) a program which differs significantly from a program offered in South
Carolina as determined by the Commission on Higher Education. The amount awarded to any
such student must be made directly to the institution for the account of the grantee.

18A.4. (CHE: Out-of-State School of the Arts) The funds
appropriated herein for Out-of-State School of the Arts must be expended for an SREB Contract
Program, administered by the Commission, which will offset the difference between the
out-of-state cost and in-state cost for artistically talented high school students at the North
Carolina School of the Arts.

18A.5. (CHE: Real Property Disposal) Before any local area
higher education commission may dispose of any real property, the approval of the Budget and
Control Board must be obtained.

18A.6. (CHE: Councils Committees, Etc., Representation) Each
four-year campus of each state-supported senior college and university shall have the same
representation on all formal and informal councils, advisory groups, committees, and task forces
of the commission, not including the formula advisory committee, as the independent four-year
colleges. Representation on the Formula Advisory Committee shall include from the S.C.
Legislature the following voting members: two members of the Senate Finance Committee and
two members of the House Ways and Means Committee to be appointed by the respective
chairman.

18A.7. (CHE: Access & Equity Programs) Of the funds
appropriated herein for Desegregation Programs, the Commission on Higher Education shall
distribute at least $105,319 to South Carolina State University, $26,309 to Denmark Technical
College, and $263,415 to the Access and Equity Program. With the funds appropriated herein
for formula funding increases, the colleges and universities shall supplement their access and
equity programs so as to provide, at a minimum, the same level of minority recruitment activities
as provided during the prior fiscal year.

18A.8. (CHE: Deadline for Formula Changes) The allocations
made for the immediate fiscal year following March 1 of any year must not be adjusted due to
any change in the formula and any change in the input data into the formula after March 1 of the
year. Any changes in allocation due to formula changes must be held in abeyance until the next
year's allocation as required herein. By March 1, the Commission on Higher Education shall
submit the final formula and the input data into the formula to the Senate Finance Committee,
the House Ways and Means Committee, the Senate Education Committee, and the House
Education and Public Works Committee.

18A.9. (CHE: Reciprocal Tuition) The University of South
Carolina's Aiken Campus may offer in-state tuition to any student whose legal residence is in the
Richmond/Columbia County area of the neighboring state of Georgia as long as the

Georgia Board of Regents continues its Georgia Tuition Program by which in-state tuition is
offered to students residing in the Aiken/Edgefield County Area of the State of South Carolina.

18A.10. (CHE: Penn Center) Of the funds appropriated to
Higher Education formula, $174,000 shall be allocated to the University of South Carolina -
Beaufort for the Penn Center Project. The funds allocated shall not be used for any other
purposes and shall not be reduced due to budget reductions.

18A.11. (CHE: Midlands Tec Property Acquisition) Before
disposal of the property on which the S.C. Fire Academy currently resides, Midlands Technical
College must first be given the option of acquiring this property.

18A.12. DELETED

18A.13. (CHE: Southeastern Manufacturing Technology
Center) The South Carolina Commission on Higher Education shall review annually the
activities of the Southeastern Manufacturing Technology Center and make a budget
recommendation to the General Assembly. The funds appropriated to the University of South
Carolina - Columbia for the Southeastern Manufacturing Technology Center may not be used for
any other purpose.

18A.14. (CHE: Greenville Higher Education Center Rent) Of
the funds appropriated to higher education, $337,694 will be allocated to Greenville Technical
College to pay the annual rent for the Greenville Higher Education Center.

18A.15. (CHE: Property Disposal) The governing body for
each technical college, public college and university shall review the real property titled in the
name of its institution to determine if such property is excess to the institution's anticipated needs
and is available for disposal. All real properties determined to be excess may be disposed of
with the approval of the Budget and Control Board. The proceeds of such sales are to be
disposed of as follows: If the property was acquired as a gift, through tuition student fees, county
funds, or earned income, the proceeds may be retained by the selling institution for use in accord
with established needs. The proceeds acquired from the sale of real property acquired through
unique State appropriations, State Capital Improvement Bonds, or formula funds are to revert to
the State's General Fund. The responsibility for providing any necessary documentation
including but not limited to documenting the fund source, of any real property proposed for sale
rests with each respective institution.

18A.16. DELETED

18A.17. (CHE: SREB Funding) Funds appropriated for SREB
contracts and dues may not be transferred or reduced.

18A.18. DELETED

18A.19. (CHE: Out-Of-State Tuition Subsidy Reduction)
State-supported colleges and universities, including technical colleges, shall not increase the
tuition and fees charged to in-state undergraduate students until the institutions recapture and
maintain one hundred percent of the total education and general cost for out-of-state
undergraduate students. No state funds can be used to provide undergraduate out-of-state
subsidies.

Should there be any in-state undergraduate tuition increase in violation of this
section, the appropriations in this act to that institution shall be reduced by the amount generated
by that increase.

18A.20. (CHE: Advanced Placement) Students successfully
completing advanced placement courses and receiving a score of three (3) or above on the exam
shall receive advanced placement credit for each course in all post-secondary public colleges in
South Carolina.

18A.21. DELETED

18A.22. (CHE: African-American Loan Program) Of the funds
appropriated to the Commission on Higher Education for the African-American Loan Program,
$130,000 shall be distributed to South Carolina State University and $100,000 shall be
distributed to Benedict College, and must be used for a loan program with the major focus of
attracting African-American males to the teaching profession. The Commission of Higher
Education shall act as the monitoring and reporting agency for the African-American Loan
Program. $100,000 shall be distributed to South Carolina State University for the purpose of
funding the 1890 Leadership Institute. Of the funds allocated according to this proviso, no more
than 10% shall be used for administrative purposes.

18A.23. (CHE: Scholarship and Grants Allocation) In instances
where the equal division of the appropriated funds between need-based grants and the Palmetto
Fellows Program exceeds the capacity to make awards in either program, the Commission on
Higher Education has the authority to re-allocate the remaining funds between the two programs
until these programs are fully implemented in FY 2000-2001, after which an equal division
between the two programs shall be maintained. A renewal applicant must have maintained a
minimum cumulative grade point average of 2.0 on a 4.0 scale.

18A.24. DELETED

18A.25. DELETED

18A.26. (CHE: Palmetto Fellows Scholarship) It is the intent of
the General Assembly to insure that the most academically gifted students who applied for the
Palmetto Fellows Scholarship during 1996-97 are awarded a scholarship for the purpose of
keeping these students in South Carolina. In addition to any student who has already been
awarded a Palmetto Fellows Scholarship, any student who will graduate from a high school in
South Carolina and had applied and meets the following priority-ordered criteria shall be
awarded a Palmetto Fellow Scholarship insofar as funds are available:

1) All National Merit semifinalists,

2) All students who scored 1400 or better on
their SAT (or its equivalent on the PSAT or the ACT),

3) All students who scored 1300 on their SAT
or better (or its equivalent) with a 3.5 or better GPA, and

4) All students who ranked first in their class
with a 3.75 or better GPA. All GPA's must be converted to a 4.0 scale.

Each Palmetto Fellows scholar will receive up to $5,000 annually for up to eight
semesters to pursue a baccalaureate degree at participating institutions. All other sources of
grant funds must be applied to the unmet total cost of attendance before calculating the
scholarship award. The maximum amount may not exceed the cost of attendance. To fund these
additional scholarships, the Commission on Higher Education is authorized to use any carry
forward funds from FY 96-97 in the Palmetto Fellows Scholarship account, as well as using as
much as is needed to fund the remaining scholarships from the contingent annual license tax
imposed on operators of licensed low-level radioactive waste disposal sites.

18A.27. (CHE: Performance Funding) Funds appropriated in
this bill or any other appropriations bill designated as performance funding shall be used to
implement Act 359 of 1996. Of the performance indicators prescribed the following shall be
used for FY 1997-98:

A. MISSION FOCUS
1. Approval of mission statement
a. The measure shall be the submission and
approval of a mission statement that is in compliance with sector requirements specified in Act
359.
B. QUALITY OF FACULTY
1. Compensation of FACULTY
a. The measure shall be FACULTY salaries by
rank, discipline, and type of institution compared to national average, aspirational peer group
averages, or sector averages.
C. INSTRUCTIONAL QUALITY
1. Class size and student/teacher ratio
a. The measure shall be the average class size
by sector, discipline, level, and mode of delivery compared to the average of aspirational peer
groups and the ratio of full-time equivalent students to full-time equivalent teaching FACULTY
compared to the average of aspirational peer groups or sector averages.
2. Credit hours taught by instructional staff
a. The measure shall be the average number of
credit hours taught by full-time teaching faculty and full-time equivalent teaching faculty, by
level and sector compared to aspirational peer groups or sector averages.
3. Program and degree accreditation
a. The measure shall be the number of programs
listed in the `Inventory of Academic Degree Programs' holding accreditation from a recognized
accrediting agency as a percent of the total number of programs listed in the `Inventory of
Academic Degree Programs' for which accreditation is available.
4. Ratio of full-time faculty as compared to other full-time
employees
a. The measure shall be the total number of all
full-time faculty members paid from unrestricted Educational and General Funds as a percent of
the total number of all full-time employees paid from unrestricted Educational and General
Funds.
D. ADMINISTRATIVE EFFICIENCY
1. Percentage of administrative costs as compared to academic
costs
a. The measure shall be academic costs as a
percentage of total educational and general expenditures compared to administrative costs
(institutional support) as a percentage of total educational and general expenditures.
2. Amount of general overhead costs
a. The measure shall be general overhead cost
per full-time equivalent student.
E. ENTRANCE REQUIREMENTS
1. SAT and ACT scores
a. The measure shall be the scores of first-time
entering freshmen.
2. SC residents a priority (under-graduate education)
a. The measure shall be based on the enrollment
of in-state undergraduate students compared to total undergraduate students.
F. GRADUATES' ACHIEVEMENTS
1. Scores of graduates' on post-undergraduate professional,
graduate, or employment-related examinations and certification tests.
a. The measure shall be the percentage of total
students taking certification examinations who pass the examination on the first attempt and, if
data is available, the percentage of the total students who pass the examination on subsequent
attempts.
G. USER-FRIENDLINESS OF INSTITUTION
1. Transferability of Credits
a. The measure shall be the extent to which
criteria, established and approved by the Commission in consultation with the higher education
community, are achieved by the institution.
2. Accessibility to the institution of all citizens of the State
a. The measure shall be the percent of other
race undergraduate students enrolled, the total number of credit hours generated off-campus in
counties where no comparable program is offered by a public institution, the total number of
credit hours generated in-state through distance education.
H. RESEARCH FUNDING
1. Amount of public and private sector grants
a. The measure shall be the expenditure of the
current fiscal year's public and private sector research grants, gifts and local support.

The methodology for the distribution of performance funding to the institutions shall be based on
each institutions' achievement of a set of benchmarks which include both sector benchmarks and
Institutional benchmarks. Sector benchmarks are to be developed by the Commission on Higher
Education. Institutional benchmarks are to be developed, as part of a strategic plan, by each
institution with consent of the Commission on Higher Education. This methodology is to take
into consideration sector averages and institutional beginning averages in order for each
institution to have the opportunity to move toward their institutional benchmark and their sector
benchmark. 1997-98 data shall serve as the base-line for these indicators and the remaining
indicators required for full implementation in Fiscal Year 1999-2000 as required by Act 359 of
1996.

18A.28. (CHE: Palmetto Fellow Scholarships Regulations) This proviso is
intended to provide direction to the Commission on Higher Education in developing the
regulations for the Palmetto Fellows Scholarship program and to ensure that the intent of the
General Assembly concerning these awards and the concerns raised in the public hearing on the
awards process are addressed. These regulations must be developed and resubmitted for use in
the 1997-98 academic year by CHE in concert with the standing subcommittees of the General
Assembly to which the regulations were originally referred in time for the appropriate
Committees to take immediate action upon the commencement of the 1998 Legislative session.
Criteria may include, but are not limited to, academic achievement, contributions to school
and/or community, and work experience. A nationally recognized organization should be used
to assist in the development of an equitable rating instrument and methodology for scholarship
awards. The minimum criteria necessary in order to apply for a Palmetto Fellow in 1997-98
shall be an SAT or equivalent ACT score of 1200, a GPA of 3.5 on a 4.0 scale and the top 5% of
the class. An essay shall not be used as part of the application process.

H06 - SECTION 18B - HIGHER EDUCATION TUITION GRANTS

18B.1. (HETG: Disbursal of Grant Funds/Interest Earnings)
South Carolina Tuition Grants Program funds shall be disbursed to eligible students on a
semester-by-semester basis. Interest accrued on the balance of undisbursed tuition grants
programs funds on deposit with the State Treasurer's Office from September 15 through
December 31 shall be calculated by the State Treasurer's Office and transferred within 30 days to
the South Carolina Tuition Grants Program to be awarded as tuition grants to eligible students.

H09 - SECTION 18C - CITADEL, THE

18C.1. DELETED

18C.2. (CIT: Women's Leadership Carry Forward) Of the funds
appropriated in Item 50, Section 2 of Act 146 of 1995, for The Citadel's Women's Leadership
Program, $440,000 shall be carried forward to be used in Fiscal Year 1997-98 for the costs
involved with assimilating females into the Citadel.

H27 - SECTION 18K - UNIVERSITY OF SOUTH CAROLINA

18K.1. (USC: Palmetto Poison Control Center) Of the funds
appropriated or authorized herein, the University of South Carolina shall expend at least
$150,000 on the Palmetto Poison Control Center.

18K.2. (USC: Public Service Activities) Of funds appropriated
to the University of South Carolina in Section 18KA for public service activities, $25,000 shall
be provided for the continuing operation of the Gerontology Project, $90,624 shall be provided
for the Law Enforcement Census and Annual Law Enforcement Report which is to be prepared
by the Office of Agency Research and Service, College of Criminal Justice, and $20,000 for the
Old Fort Congaree Project.

18K.3. (USC: Confederate Relic Room Rent) Rent may be
charged by the University of South Carolina to the Confederate Relic Room, for the use of space
occupied as of June 30, 1992, in accordance with procedures established by the Budget and
Control Board.

18K.4. (USC: Child Development Centers - Indirect Cost Partial
Waiver) The University of South Carolina, Columbia, Lancaster, Spartanburg, and Union
Campuses shall be allowed to apply a 5% indirect cost rate for their four early childhood
education centers supported by the SC Health and Human Services Block Grant for FY 93-94.

18K.5. (USC: Indirect Cost Recovery Waiver for Summer Food
Service Program) The University of South Carolina is granted partial waiver of the remittance
of indirect cost recoveries for the Summer Food Service Program supported by the Federal
Department of Agriculture through the Department of Social Services. The waiver may not
exceed the amount of direct administrative cost for the program.

18K.6. DELETED

18K.7. (USC: School of Medicine Practice Plan) Employees
of agencies and institutions affiliated with the University of South Carolina School of Medicine,
who hold faculty appointments in the School, may participate in the School's Practice Plan.
Funds generated by such participants shall be handled in accordance with University policies
governing Practice Plan funds

18K.8. DELETED

18K.9. (USC: School Improvement Council) Of the funds
appropriated to the University of South Carolina Columbia Campus, $100,000 shall be used for
the School Improvement Council.

H51 - SECTION 18M - MEDICAL UNIVERSITY OF

SOUTH CAROLINA

18M.1. (MUSC: Family Practice Residency System) Statewide
family practice residency system funds appropriated for faculty salaries, teaching services, and
consultant fees may only be expended when the above activities are accomplished for
educational purposes in the family practice centers. Authorization is hereby granted to the
Medical University of South Carolina to expend such funds in hospital-based clinical settings
apart from the consortium hospital, when such settings are determined by the President of the
Medical University of South Carolina with approval of the Board of the Medical University to
provide appropriate educational experience and opportunities to the family practice residents and
these funds shall not be transferred to any other program.

18M.2. (MUSC: Ombudsman Program) From the funds
appropriated in this section, the Medical University of South Carolina shall provide the space
needed for the Ombudsman Program of the Office of the Governor and shall provide pertinent
written statements, documents, exhibits and other items, as well as any other assistance, that is
deemed necessary for the performance of the program's mandates.

18M.3. (MUSC: AHEC Residency Programs Formula Funding)
South Carolina Area Health Education Consortium (S.C. AHEC) shall be awarded funding for
the Statewide Family Practice Residency System and the Graduate Doctor Education Program
based on the appropriate formula, as approved by the S.C. AHEC and the Commission on Higher
Education, and the level of funding shall be the same percentage as the other State Institutions of
Higher Education.

18M.4. (MUSC: AHEC Residency Programs Funds) Funds
allocated for the residency programs (Statewide Family Practice and Graduate Doctor
Education) shall be used for those programs only. Funds allocated for the Area Health
Education Center program shall be used for that program only.

18M.5. (MUSC: AHEC Rural Physician Recruitment Program)
The funds appropriated to The Medical University of South Carolina for the "rural
physician program" shall be administered by the SC AHEC Physician recruitment office.
The Medical University of South Carolina shall be responsible for the fiscal management of
funds to ensure that state policies and guidelines are adhered to. A legislatively appointed Board
is hereby created to manage and allocate these funds in the best interests of the citizens of South
Carolina. The Board will be composed of the following: The Executive Director, or his
designee, of the SC Primary Care Association; the Dean, or his designee, of the USC School of
Medicine; the Executive Director, or his designee, of the S.C. Medical Association; two
representatives from rural health care settings, one to be appointed by the Chairman of the
Senate Medical Affairs Committee and one to be appointed by the Chairman of the House
Medical, Military, Public and Municipal Affairs Committee; the Commissioner, or his designee,
of the Department of Health and Environmental Control; the Executive Director, or his designee,
of the S.C. Hospital Association; the Commissioner, or his designee, of the Commission on
Higher Education; and the Director, or his designee, of the Department of Health and Human
Services. The Chairman, with the concurrence of the Board, shall appoint 3 at-large members
with 2 representing nursing and 1 representing allied health services in South Carolina.

18M.6. (MUSC: Diabetes Center of Excellence) Of the funds
appropriated to the Medical University of South Carolina, $396,000 shall be used for a Diabetes
Center of Excellence.

18M.7. DELETED

18M.8. (MUSC: Realign Appropriations) In consultation with
the Senate Finance Committee and the House Ways and Means Committee, the Medical
University of South Carolina is authorized to realign its Fiscal Year 1997-98 appropriations into
a revised structure to reflect actual program operations.

H59 - SECTION 18N - TECHNICAL & COMPREHENSIVE

EDUCATION BOARD

18N.1. (TEC: Real Property Acquisition) Before any local
technical education area commission may acquire any real property, the approval of the State
Board for Technical and Comprehensive Education and the State Budget and Control Board and
the Joint Bond Review Committee shall be obtained.

18N.2. (TEC: Training of New & Expanding Industry)
Notwithstanding the amounts appropriated in this section for "Special Schools", it is
the intent of the General Assembly that the State Board for Technical and Comprehensive
Education expend whatever available funds as are necessary to provide direct training for new
and expanding business or industry. In the event expenditures are above the appropriation, the
appropriation in this section for "Special Schools" shall be appropriately adjusted, if
and only if, revenues exceed projections and the Budget and Control Board approves the
adjustment.

18N.3. (TEC: Training of New & Expanded Industry Carry
Forward) In addition to the funds appropriated in this section, any of the funds appropriated
under this section for the prior fiscal year which are not expended during that fiscal year may be
carried forward and expended for direct training of new and expanding industry in the current
fiscal year.

18N.4. (TEC: Training for New and Expanded Industry -
Payments of Prior Year Expenditures) The State Board for Technical and Comprehensive
Education may reimburse business and industry for prior year training costs billed to the agency
after fiscal year closing with the concurrence of the Comptroller General.

18N.5. DELETED

H63 - SECTION 19 - EDUCATION, DEPARTMENT OF

19.1. DELETED

19.2. (SDE: Appropriation Transfer Prohibition) The amounts
appropriated herein for aid to subdivisions, allocations to school districts, or special line items
shall not be transferred and must be expended in accordance with the intent of the appropriation.

19.3. (SDE: Attendance/Lunch Supervisors) The amounts
appropriated in this section for Attendance Supervisors and for County School Lunch
Supervisors shall be used for the payment of salaries of one attendance supervisor and one lunch
supervisor for each county. In the absence of a County Board of Education or with the approval
of the County Board of Education in multi-district counties, the salary will be proportionately
distributed among the districts of the county on the basis of the 135 average daily membership of
the prior year, provided that such funds must be used for the supervision of the Attendance
Program and the supervision of the School Food Service Program respectively. For the current
fiscal year the local supplement to salaries of county School Lunch Supervisors and School
Attendance Supervisors shall not be reduced below the supplements paid in the prior fiscal year.

19.4. (SDE: Child Development Centers) School districts which
operate Social Services Block Grant Child Development Centers shall be exempt from
Department of Education rules and regulations concerning Child Development Centers during
the current fiscal year.

19.5. (SDE: Darlington Desegregation Lawsuit) Funds
appropriated, pursuant to this act or any other act, to the Department of Education for the
purpose of effectuating a settlement of the Darlington Desegregation lawsuit brought against the
State of South Carolina or any of its political subdivisions shall be expended for instructional
materials. Unexpended funds may be carried forward from the prior fiscal year to be expended
for this purpose.

19.6. (SDE: DHEC - Comprehensive Health Assessment) Of
the funds appropriated to the Department of Education-Administration, $94,658 must be
transferred to DHEC to provide comprehensive health assessments for children entering first
grade in school districts having more than fifty percent of the students qualifying for free and
reduced price lunches. All school districts shall participate, to the fullest extent possible, in the
Medicaid program by seeking appropriate reimbursement for services and administration of
health and social services. Reimbursements to the school districts shall not be used to supplant
funds currently being spent on health and social services. DHEC shall coordinate with the State
Department of Education and the Department of Health and Human Services in submission of a
report to the Senate Education Committee and House Education and Public Works Committee on
the effectiveness of health and social programs in identifying and improving children's health
status and the need for follow-up and/or additional services.

19.7. (SDE: EFA Formula/Base Student Cost Inflation Factor)
To the extent possible within available funds, it is the intent of the General Assembly to provide
for 100 percent of full implementation of the Education Finance Act to include an inflation factor
projected by the Division of Budget and Analyses to match inflation wages of public school
employees in the Southeast. The base student cost for FY 1997-98 has been determined to be
$1,839 which includes a 4.5% inflation factor.

Any unallocated Education Finance Act funds at the end of the current fiscal
year must be allocated to the school districts for school building aid on a non-matching basis on
the same basis that districts receive Education Finance Act allocations.

19.8. (SDE: EFA - Formula) The amount appropriated in Part
IA, Section 19 for "Education Finance Act" shall be the maximum paid under the
provisions of Act 163 of 1977 (the South Carolina Education Finance Act of 1977) to the
aggregate of all recipients. The South Carolina Education Department shall develop formulas to
determine the State and required local funding as stipulated in the South Carolina Education
Finance Act of 1977. Such formulas shall require the approval of the State Board of Education
and the Budget and Control Board. After computing the EFA allocations for all districts, the
Department shall determine whether any districts' minimum required local revenue exceeds the
districts' total EFA Foundation Program. When such instance is found, the Department shall
adjust the index of taxpaying ability to reflect a local effort equal to the cost of the districts' EFA
Foundation Program. The districts' weighted pupil units are to be included in determination of
the funds needed for implementation of the Education Finance Act statewide.

In the event that the formulas as devised by the Department of Education and
approved by the State Board of Education and the Budget and Control Board should provide for
distribution to the various school districts totaling more than the amount appropriated for such
purposes, subject to the provisions of this proviso, the Department of Education shall reduce
each school district entitlement by an equal amount per weighted pupil so as to bring the total
disbursements into conformity with the total funds appropriated for this purpose. If a reduction
is required in the State's contribution, the required local funding shall be reduced by the
proportionate share of local funds per weighted pupil unit. The Department of Education shall
continually monitor the distribution of funds under the provisions of the Education Finance Act
and shall make periodic adjustments to disbursements to insure that the aggregate of such
disbursements do not exceed the appropriated funds.

Notwithstanding any other provision of law, local districts shall not be
mandated or required to inflate the base number in their respective salary schedules by any
percentage greater than the percentage by which the appropriated base student cost exceeds the
appropriated base student cost of the prior fiscal year.

19.9. (SDE: Employer Contributions/Allocations) It is the
intent of the General Assembly that the appropriation contained herein for "Public School
Employee Benefits" shall not be utilized to provide employer contributions for any portion
of a school district employee's salary which is federally funded.

State funds allocated for school district employer contributions must be
allocated by the formula and must be used first by each district to cover the cost of fringe
benefits for personnel required by the Defined Minimum Program, food service personnel and
other personnel required by law. Once a district has expended all state allocated funds for fringe
benefits, the district may utilize food service revenues to fund a proportionate share of fringe
benefits costs for food service personnel.

The Department of Juvenile Justice and the Department of Corrections' school
districts must be allocated funds under the fringe benefits program in accordance with criteria
established for all school districts.

19.10. (SDE: Employer
Contributions/Obligations) In order to finalize each school district's allocations of Employer
Contributions funds for retiree insurance from the prior fiscal year, the Department of Education
is authorized to adjust a school district's allocation in the current fiscal year accordingly to
reflect actual payroll and payments to the Retirement System from the prior fiscal year. In the
event the Department of Education is notified that an Educational Subdivision has failed to remit
proper payments to cover Employee Fringe Benefit obligations, the Department of Education is
directed to withhold the Educational Subdivision's state funds until such obligations are met.

19.11. (SDE: Fees - Incidental &
Matriculation) Notwithstanding any other provision of law, the board of trustees of any school
district which does not have the authority by any special act of the General Assembly to charge
the cost of educational materials and supplies is authorized to charge a fee to offset the cost of
education materials and supplies. The board of trustees of each school district which charges
such fees is directed to develop rules and regulations for such fees which take into account the
students' ability to pay and to hold the fee to a minimum reasonable amount. Fees may not be
charged to students eligible for free lunch and must be pro rata for students eligible for reduced
price lunches, if the parents or guardians of these students so request.

19.12. (SDE: Governor's School for Science
& Math) Any unexpended balance on June 30, of the prior fiscal year of funds appropriated
to or generated by the Governor's School for Science and Mathematics may be carried forward
and expended in the current fiscal year pursuant to the direction of the Board of Trustees of the
School. Of the general fund appropriation to the Governor's School for Science and
Mathematics, $30,000 must be used to provide for library and facilities improvements at Coker
College that will be of benefit both to the College and the School.

19.13. (SDE: Educational Responsibility/Foster
Care) Notwithstanding any other provision of law, the responsibility for providing a free and
appropriate public education program for all children including handicapped students is vested in
the public school district wherein a child of lawful school age resides in a foster home, group
home, orphanage, or a state operated health care facility including a facility for treatment of
mental illness or chemical dependence located within the jurisdiction of the school district. The
districts concerned may agree upon acceptable local cost reimbursement. If no agreement is
reached, districts providing education shall receive from the district where the child last resided
before placement in a facility an additional amount equivalent to the statewide average of the
local base student cost multiplied by the appropriate pupil weighting as set forth in Section
59-20-40 of the Education Finance Act. If a child from out-of-state is being resided in a facility
owned and/or operated by a for profit entity, the district providing educational services shall be
reimbursed by the for profit entity the local district's local support per weighted pupil above the
statewide average base student cost multiplied by the appropriate pupil weighting as set forth in
Section 59-20-40 of the Education Finance Act. School districts providing the education shall
notify the non-resident district in writing within 45 calendar days that a student from the
non-resident district is receiving education services pursuant to the provisions of the proviso.
The notice shall also contain the student's name, date of birth, and handicapping condition if
available. If appropriate financial arrangements cannot be effected between institutions of the
state and school districts, institutions receiving educational appropriations shall pay the local
base student cost multiplied by the appropriate pupil weighting. Children residing in institutions
of state agencies shall be educated with non-disabled children in the public school districts if
appropriate to their educational needs. Such institutions shall determine, on an individual basis,
which children residing in the institution might be eligible to receive appropriate educational
services in a public school setting. Once these children are identified, the institution shall
convene an IEP meeting with officials of the public school district in which the institution is
located. If it is determined by the committee that the least restrictive environment in which to
implement the child's IEP is a public school setting, then the school district in which the
institution is located must provide the educational services. However, that school district may
enter into contractual agreements with any other school district having schools located within a
45 mile radius of the institution. The cost for educating such children shall be allocated in the
following manner: the school district where the child last resided before being placed in an
institution shall pay to the school district providing the educational services an amount
equivalent to the statewide average of the local base student cost multiplied by the appropriate
pupil weighting as set forth in Section 59-20-40 of the Education Finance Act; the school district
providing the educational services shall be able to count the child for all funding sources, both
state and federal. The institution and school district, through contractual agreements, will
address the special education and related services to be provided to students. Should the school
district wherein the institution is located determine that the child cannot be appropriately served
in a public school setting, then the institution may request a due process hearing pursuant to the
procedures provided for in the Individuals with Disabilities Education Act.

19.14. (SDE: Handicapped/Preschool Children)
The State funding for free appropriate public education provided for the three and four year old
disabled children served under Act 86 of 1993 shall be distributed based on the district's index
of taxpaying ability as defined in Section 59-20-20(3). Five-year-old disabled children shall
continue to be funded under the Education Finance Act of 1977.

19.15. (SDE: Instruction in Juvenile Detention
Centers) It shall be the responsibility of the School District where a local Juvenile Detention
Center is located to provide adequate teaching staff and to ensure compliance with the
educational requirements of this state. Students housed in local detention centers are to be
included in the average daily membership count of students for that district and reimbursement
by the Department of Education made accordingly.

19.16. DELETED

19.17. DELETED

19.18. (SDE: Revenue Authorization) The
State Department of Education is hereby authorized to collect, expend, and carry forward
revenues in the following areas to offset the cost of providing such services: the sale of
publications, brochures, photo copies, listings and labels, Directory of South Carolina Schools,
student health record cards, items to be recycled, and high school diplomas and certificates; the
collection of out-of-state and in-state investigation fees, registration fees for non-SDE
employees, recurring facility inspection fees, teacher certification fees; the handling of
audio-visual film; the provision of contract computer services to school districts and other state
agencies, joint broadcast service to school districts, and education-related statistics through
agreement with the National Center for Education Statistics; the lease or sale of programs of
television, audio or microcomputer software; the collection of damage fees for instructional
materials and the sale of unusable instructional materials; sale of fuel; use and repair of
transportation equipment; the receipt of insurance and warranty payments on Department of
Education equipment and the sale of used school buses and support equipment. The Department
of Education is authorized to collect revenue for deposit into the State General Fund for testing
material purchases and test rescoring fees.

19.19. (SDE: School District Bank Accounts)
Notwithstanding any other provisions of law, each school district in this State, upon the approval
of the district's governing body, may maintain its own bank account for the purpose of making
disbursement of school district funds as necessary to conduct school district business and each
county treasurer is hereby authorized to transfer such amount as needed, upon receipt of a
written order certified by the district governing body or their designee. Such order shall contain
a statement that such amount is for immediate disbursement for the payment of correct and legal
obligation of the school district.

19.20. (SDE: School Lunch Program Aid) The
amount appropriated herein for School Lunch Program Aid shall be divided among the County
Boards of Education of the State upon the basis of the number of schools participating in the
School Lunch Program in each county during the prior school year. The travel expenses of the
County School Lunch Supervisor shall be paid from this appropriation at the prevailing rate of
mileage allowed by the State. These funds may be used as an aid in improving the School Lunch
Program. These funds may not be used to supplement the salaries of school lunch supervisors.
In the absence of a County Board of Education in multi-district counties, the funds will be
divided among the school districts of the county on the basis of the number of schools
participating in the School Lunch Program in each district during the prior school year.

19.21. (SDE: Teacher Classification/Other
Agencies) Employees in teaching positions in schools operated by the Department of Juvenile
Justice, the S. C. Department of Corrections and the South Carolina School for the Deaf and the
Blind shall be exempt from classification by the Division of Budget and Analyses during the
current fiscal year. Employees in teaching positions in schools operated by John De La Howe
and Wil Lou Gray Opportunity School, at the discretion of the agency, are exempt from
classification by the Office of Human Resources.

19.22. (SDE: Teachers/Temporary &
Emergency Certificates) Of the funds provided for teacher salaries funds may be used to pay
salaries for those teachers holding temporary or emergency certificates which shall remain valid
for the current school year if the local board of education so requests. The State Department of
Education shall submit to the General Assembly by March 1, of the current fiscal year, a report
showing by district the number of emergency certificates by category; including an enumeration
of the certificates carried forward from the previous year. No temporary or emergency
certificate shall be continued more than twice.

19.23. (SDE: Testing/Continuous Assessment)
Of the funds appropriated under Section III, Division of Education Initiatives, the Department of
Education is authorized to use funds currently allocated for testing in grades 1, 2 and 6, for a
final year, to field-test a continuous assessment system for classroom level use in Kindergarten
through grade 3 and for piloting new items for the state assessment system. Plans for the
statewide implementation of a continuous assessment system in Kindergarten through grade
three and for the new items for the assessment system and plans for the new assessment system
must be reported to the Senate Education and House Education Committees no later than
December 1, 1997.

Notwithstanding any other provision of law, for the 1997-98 school year the
basic skills assessment tests may be administered in grades 1 and 2; and only the Basic Skills
science and writing tests will be administered in grade 6; all other Basic Skills tests will continue
to be administered in the established grades.

19.24. DELETED

19.25. (SDE: Transportation/Demonstration
Sites) The Department of Education may designate the Charleston, Beaufort and/or Jasper
County School Districts as demonstration sites for privatization of student transportation services
and for the coordination of community based public transportation services. Funding for these
pilot sites shall not exceed that presently utilized to support school transportation in the site(s).
Appropriated funds for school bus maintenance, gas, drivers and fringe benefits are to be used
for this project.

19.26. (SDE: Travel/Outside of Continental
U.S.) School District allocations from General Funds and EIA funds shall not be used for travel
outside of the continental United States.

19.27. (SDE: Year End Closeout) The State
Department of Education is authorized to expend Federal and Earmarked Funds (not including
State or EIA Funds) in the current fiscal year for expenditures incurred in the prior year. The
Department is also authorized to use appropriated funds to pay for textbooks shipped in the
fourth quarter of the prior fiscal year.

19.28. (SDE: Transportation Collaboration)
The Department of Education School Bus Maintenance Shops shall be permitted, on a cost
reimbursable-plus basis, to deliver transportation maintenance and services to vehicles owned or
operated by public agencies in South Carolina.

School Buses operated by school districts, other governmental agencies or head
start agencies for the purpose of transporting students for school or school related activities shall
not be subject to State Motor Fuel taxes. Further, that school districts, other governmental
agencies or head start agencies may purchase this fuel, on a cost reimbursable-plus basis, from
the Department of Education School Bus Maintenance Shops.

19.29. DELETED

19.30. (SDE: Kindergarten - Extended Day)
Funds appropriated for the extended day portion of the five-year-old kindergarten program shall
be allocated at the EFA weight for half-day kindergarten students. Funding to local districts for
the extended-day portion of the kindergarten program shall be the number of students eligible for
the federal free and reduced lunch program. Local match is required for the extended-day
portion of the funding. Local board of trustees shall establish policies regarding priority of
service in the extended-day program. However, unobligated funds which become available
during the fiscal year will be redistributed to fund additional eligible children served in the
program on a prorated basis. The Department of Education shall immediately undertake a
comprehensive evaluation of instructional practices, teaching strategies, and pupil/teacher ratios
in order to determine best practices, refine the implementation of the program, and provide
professional development and technical assistance to schools and school districts for full-day
kindergarten. The first report of the on-going evaluation shall be provided to the Select
Committee by July 30, 1998.

19.31. (SDE: Assisting, Developing, and
Evaluating Professional Teaching--ADEPT) Funds appropriated in Part IA, Section
19XIII.A-Aid to School Districts-Act 187, may be used for the implementation of the ADEPT
system or continuation of the APT system. Of the funds appropriated, $115,000 is to be used to
pay colleges and universities for APT and ADEPT services. The remaining funds will be used to
reimburse school districts for the cost of implementing the ADEPT program.

19.32. DELETED

19.33. DELETED

19.34. (SDE: Alternative School Programs)
The Department of Education shall proceed with a study of Alternative Schooling to include
in-school strategies and programs as well as alternative schools, currently in place in South
Carolina and across the nation. The study should address, but is not limited to, curriculum
requirements, facility needs, staffing and per pupil costs of successful Alternative Schooling.
Findings and recommendations for both urban and rural school areas shall be provided to the
General Assembly by December 1, 1997.

19.35. (SDE: NTE Waiver) For individuals
with work experience and content area degree, but who lack South Carolina teaching credentials,
the State Board of Education is authorized to waive, for an individual for one year only, the
completion of the NTE (Praxis II) subject area exam and pre-service institute required under the
State Board of Education's Critical Need Teacher Certification Program if unavoidable
circumstances prevent the individual from meeting the requirements and participating in the
Critical Need Program. The teachers for whom this waiver is granted shall be entitled to
compensation under the school district's teacher salary schedule based on degree and years
experience as a teacher. The State Board of Education may grant this waiver to an individual
more than one time.

19.36. DELETED

19.37. (SDE: Summer Exit Exam Cost) Funds
appropriated in Part IA, Section 19III.A may be used to offset the costs of the summer
administration of the Exit Examination. These funds may be expended to cover the costs related
to developing, printing, shipping, scoring, and reporting the results of the assessments. Local
school districts may absorb local costs related to administration.

19.38. (SDE: Governor's School for Arts
& Humanities) Of the funds appropriated in this section for the Governor's School for the
Arts and Humanities, such funds may be used for personal services, operating expenses,
equipment and other expenses as necessary to complete the school.

19.39. DELETED

* 19.40. (SDE: Project Citizen) Of the
funds appropriated to the Department, $9,100 shall be allocated to the Center for Civic
Education for a civic education project for grades six through nine.

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

H63 -SECTION 19A - EDUCATION-EIA, DEPARTMENT OF

19A.1. (SDE-EIA: Local Financial Support) There shall be no
required local match for Education Improvement Act funds appropriated in Part IA, Section 19X.
This shall not impact or alter the requirements of Section59-21-1030, level of financial effort per
pupil required of each school district; application for waiver. The inflationary increase required
for local financial effort as defined in Section 59-21-1030 for FY 1997-98 is 3.2%.

19A.2. (SDE-EIA: Prohibition on Appropriation Transfers) The
amounts appropriated herein for aid to subdivisions or allocations to school districts shall not be
transferred or reduced and must be expended in accordance with the intent of the appropriation.

19A.3. (SDE-EIA: Revenue Shortfall) A minimum of one-half
of one percent of the total estimated EIA revenue must be appropriated for School Building Aid.
In the event that an official EIA revenue shortfall is declared, the appropriation for EIA School
Building Aid shall be reduced by the amount necessary to offset the shortfall. Should EIA
School Building Aid not be sufficient, each remaining EIA program shall be reduced on a pro
rata basis as necessary to compensate for the total revenue shortfall. Funds appropriated for EIA
teacher salaries and related fringe benefits in Part IA, Section 19X.C.1. are exempt from such
reduction.

19A.4. (SDE-EIA: XF-School Building Aid Allocation) Funds
appropriated in Part IA, Section 19X.F. School Building Aid shall be transferred to a special
trust fund established by the Comptroller General. Funds appropriated shall be distributed to the
school districts of the State for use in accordance with Section 59-21-350 of the Code of Laws of
1976. Funds shall be allocated to eligible school districts on a per pupil basis. The allocation
must be based on the 135 day count of average daily membership for the second preceding fiscal
year.

19A.5. (SDE-EIA: XA-Adult Education/Literacy) From the
EIA funds provided in Part IA, Section 19X.A. for adult education, $150,000 must be used to
provide for ten pilot projects for rural literacy development. In addition, each county shall
receive $50,000 for use by the school districts for adult literacy for service delivery to
adult-nonreaders and those reading at or below the eighth grade level. The school districts may
provide this service or may contract to have this service provided. In multi-district counties, the
districts must agree on the method of service delivery for the entire county and select one district
to serve as the fiscal agent.

19A.6. (SDE-EIA: XA-Advanced Placement) Of the funds
appropriated in Part IA, Section 19X.A. for Advanced Placement, no more than $500,000 must
be made available on a flat rate per class basis to schools offering "singleton"
Advanced Placement classes with a student/teacher ratio equal to or less than ten to one. The
State Board of Education shall develop guidelines for the distribution of these
"singleton" funds. The remaining AP funds must be distributed to the school
districts of the state based upon the 135 day count of AP students served. AP funds may be used
to defray the testing costs of the International Baccalaureate Program which are incurred by
school districts at the same per-test reimbursement rate provided for Advanced Placement
examinations. High schools may receive funding for the allowable costs associated with ninth
and tenth grade students taking Advanced Placement courses.

19A.7. (SDE-EIA: XA-Distribution) The money appropriated
in Part IA, Section 19X. Education Improvement Program, A. Raise Academic Standards-Credits
HS Diploma shall be distributed to the school districts of the state based upon the 135 day count
of Average Daily Membership. 19A.8. (SDE-EIA: XA-Gifted
& Talented) Notwithstanding the provisions for Section 59-29-170, ten percent (10%) of
the total state dollars appropriated annually for gifted and talented programs shall be set aside for
serving artistically gifted and talented students in grades 3-12. The State Department of
Education shall allocate to districts a proportionate share of the ten percent (10%) based on the
preceding year's total average daily membership in grades 3-12. School districts shall service
students identified as artistically gifted and talented in one or more of the following visual and
performing arts areas: dance, drama, music and visual arts areas. Districts may utilize their
proportionate share of the ten percent (10%) for the purpose of contracting with other entities to
provide services to students identified as artistically gifted and talented if personnel or facilities
are not available in the school district for that service. The remaining ninety percent (90%) of
the state dollars appropriated for gifted and talented programs shall be expended in accordance
with Section 59-29-170. Each district receiving funds for the gifted and talented program shall
include an accelerated component as a part of its academically gifted and talented program.
EIA-Gifted and Talented funds may be carried forward and expended for the same purpose in the
current fiscal year.

19A.9. (SDE-EIA: XA-Gifted & Talented/CHE 8th Grade
Advisement) Of the funds appropriated in Part IA, Section 19X.A. Gifted and Talented,
$402,250 shall be used by the Commission on Higher Education to be expended on the eighth
grade advisement program. The Commission on Higher Education must provide a report on the
effectiveness of the advisement program to the Select Committee by October 1.

19A.10. (SDE-EIA: XA-Gifted & Talented/Governor's
School for Arts) Of the funds appropriated in Part IA, Section 19X.A. for Gifted and Talented
Program, $135,000 must be provided to the Governor's School for the Arts for training teachers,
administrators and supervisory personnel to work effectively in the identification, program
development and evaluation of artistically talented students and for the Outreach Program. The
Governor's School for the Arts shall report to the Select Committee on the effectiveness of the
training and Outreach programs annually by October 1.

19A.11. (SDE-EIA: XA-Gifted & Talented/Jr. Academy of
Science) Of the funds appropriated in Part IA, Section 19X.A. Gifted & Talented, $5,000
must be provided to the Junior Academy of Science. The Department of Education must provide
a report on the effectiveness of the Academy to the EIA Select Committee by October 1.

19A.13. (SDE-EIA: XA-Junior Scholars) The State Board of
Education, through the Department of Education, must provide a report on the effectiveness of
the Junior Scholars programs as appropriated in Part IA, Section 19X.A. to the EIA Select
Committee by October 1.

19A.14. (SDE-EIA: XB-Academic Assistance/Carry Forward)
Any unexpended balance from the prior fiscal year in the EIA appropriations in Part IA, Section
19X.B. for Academic Assistance may be carried forward to the current fiscal year by school
districts to be expended to operate programs in accordance with their Academic Assistance long
range plans. The Department of Education shall begin an in-depth review of district and school
strategic plans; examine the alignment of the instructional activities and benchmarks established
to reach those goals; examine the alignment of the instructional activities and strategies
undertaken by the districts and schools with their plans; and their use of academic development
funds. The review shall serve as a basis for providing technical assistance to schools and school
districts and recommendations for needed changes in the law. The first report on the on-going
evaluation shall be provided to the Select Committee no later than June 30, 1998.

19A.15. (SDE-EIA: XB-Academic Assistance/Curriculum
Development) Funds appropriated in Part IA, Section 19X.B. for Act 135 of 1993 Other
Operating must be used by the Department of Education to provide schools and school districts
with technical assistance on curriculum development, including implementing the Curriculum
Frameworks, and instructional improvement in keeping with the intent of Act 135 of 1993
(59-139-05 and 59-139-10 of the SC Code of Laws) as provided in regulations promulgated by
the State Board of Education.

19A.16. (SDE-EIA: XB-Academic Assistance/Early Child
Development) A portion of the funds appropriated in Part IA, Section 19X.B. for Academic
Assistance 4-12 may be used to support components for the K-3 academic assistance if such
change promotes better coordination of state and federal funds provided for programs for these
students. Districts requesting this waiver from the State Board of Education must demonstrate
how the use of these funds is in keeping with their long range plan and how the needs of the
students in grades 4-12 will be met.

19A.17. (SDE-EIA: XB-Academic Assistance/Formula Funding
& Distribution) Notwithstanding any other provision of law, the total funding in Part IA,
Section 19X.B. for the 4-12 Academic Assistance component of Act 135 of 1993 shall be based
on a derived free and reduced lunch eligibility count for grades 4-12 obtained by applying the
state percentage of K-3 students eligible for free and reduced lunch to the 4-12 average daily
membership; and funding for individual districts shall be based on two equally weighted factors;
the district's derived lunch percentage for grades 4-12 and its four year average for the number of
4-12 students "not meeting" standard on the state's testing programs for the years
1990-1993.

19A.18. (SDE-EIA: XB-Academic Assistance/Reading
Recovery) Of the EIA funds appropriated herein for the Academic Assistance Act 135,
$800,000 shall be used for the Reading Recovery programs throughout the State. The State
Department of Education shall report to the EIA Select Committee on the allocation and
expenditure of these funds by October 1.

19A.19. (SDE-EIA: XB-Academic Assistance/Remedial Adult
Education) Of funds appropriated in Part IA, Section 19X.B. for Academic Assistance an
amount not to exceed $1,000,000 must be used for adult education students scoring below the
BSAP standard on any portion of the exit examination at a weight of .114 of the base student
cost as defined in the Education Finance Act.

19A.20. (SDE-EIA: XB - Half Day Program for
Four-Year-Olds) Funds appropriated in Part IA, Section 19X.B. for half-day programs for
four-year-olds shall be based on the previous three years' average for students tested as
"not ready" on the CSAB, however, no district shall receive less than 90 percent of
the amount it received in the prior fiscal year.

19A.21. (SDE-EIA: XC-Black History) Funds provided for the
development of the Black History curricula may be carried forward into the current fiscal year to
be expended for the same purpose.

19A.22. (SDE-EIA: XC-Critical Teacher Needs) Funds
appropriated for EIA-Critical Teacher needs must be used for courses which support
instructional techniques and strategies in keeping with the intent of Act 135 of 1993, the Middle
Schools Project, the Preparation for Technologies Program, Curriculum Frameworks, or need
established in the school and district long range plans. These funds may be used for courses
which support the education of students with disabilities or special needs in the regular
classroom. School districts may require and collect a deposit from teachers enrolling in critical
teaching needs courses. Upon completion of the course any deposit collected shall be returned to
the teacher having made the deposit.

19A.23. (SDE-EIA: XC-Critical Teaching Needs/Roper
Mountain) Of the funds appropriated in Part IA, Section 19 X.C. for Critical Teaching Needs,
$250,000 shall be disbursed to the Roper Mountain Science Center for summer workshops for
public school science teachers. Funds disbursed to the Roper Mountain Science Center may be
carried forward.

19A.24. (SDE/EIA: XC-School Technology) Funds
appropriated in Part IA, Section 19 X.C. for school technology shall be distributed to each school
district based on a ratio of district free and reduced lunches for first through third grades to the
state total free and reduced lunches for first through third grades.

19A.25. (SDE-EIA: XC-Teacher Evaluations,
XH-Implementation/EIA Select) The State Department of Education, with the cooperation of
the school districts and teacher education institutions, must, subject to the approval of the State
Board of Education, revise the system for assisting, developing, and evaluating student
provisional, annual and continuing contract teachers. The Department of Education is authorized
to expend funds provided in Part IA, Section 19 X.C. for the Teacher Evaluation System toward
the revision of the evaluation system. The Department of Education shall provide a report on its
progress in revising the system, to include recommendations to date and a state and local fiscal
impact statement, to the EIA Select Committee by September 30 of the current year.

19A.26. (SDE-EIA: XC-Teacher Salaries/SE Average) The
projected Southeastern average teacher salary shall be the average of the average teachers
salaries of the southeastern states as projected by the Division of Budget and Analyses. For the
current school year the projected Southeastern average teacher salary is projected to be $33,547.
It is the intent of the General Assembly to fully fund or exceed the Southeastern average teacher
salary as projected.

Funds appropriated in Part IA, Section 19X.C. for Teacher Salaries must be
used to increase salaries of those teachers eligible pursuant to Section 59-20-50 (b), to include
classroom teachers, librarians, guidance counselors, psychologists, social workers, occupational
and physical therapists, school nurses, orientation/mobility instructors and audiologists in the
school districts of the state.

19A.27. (SDE-EIA: XC-Teacher Salaries/State Agencies) Each
state agency which does not contain a school district but has instructional personnel shall receive
an allocation from the line item " Alloc. EIA - TEACHER/OTHER PAY" in Part IA,
Section 19X.K. for teachers salaries based on the following formula: Each state agency shall
receive such funds as are necessary to adjust the pay of all instructional personnel to the
appropriate salary provided by the salary schedules of the school district in which the agency is
located. Instructional personnel may include all positions which would be eligible for EIA
supplements in a public school district, and may at the discretion of the state agency, be defined
to cover curriculum development specialists, educational testing psychologists, psychological
and guidance counselors, and principals.

The funds appropriated herein in the line item " Alloc. EIA -
Teacher/Other Pay" must be distributed to the agencies by the Budget and Control Board.

19A.28. (SDE-EIA: XC-Tech Prep) Of the funds appropriated
in Part IA, Section 19X.C. for the Tech Prep Program, $75,000 shall be used by the State
Department of Education, through the Tech Prep Consortia, to provide for professional
development in applied techniques and integration of curriculum, and professional development
in career guidance for teachers and guidance counselors and training mentors. In addition,
$500,000 shall be allocated for Career Counseling Specialists in the Tech Prep Consortia. Of the
funds appropriated in the prior fiscal year, unexpended funds may be carried forward to the
current fiscal year and expended for the same purposes.

19A.29. (SDE-EIA: XD-Principal Salary Supplements) Funds
appropriated in Part IA, Section 19X.D. for salary supplements for principals and accompanying
employer contributions must be distributed to school districts based on average daily
membership (ADM). Each school district shall distribute the funds as salary supplements in
addition to existing compensation equally among principals and assistant principals employed by
the district.

19A.30. (SDE-EIA: XE-School Incentive Grants) Funds
appropriated for EIA School Incentive Grants in the previous fiscal year may be carried forward
and expended during the current fiscal year by the school districts that earned School Incentive
Awards during the prior fiscal year.

19A.31. DELETED

19A.32. DELETED

19A.33. (SDE-EIA: XG-Impaired School Districts) Funds
appropriated in Part IA, Section 19X.G. for Impaired School Districts, shall be used to provide
grants to assist school districts in correcting education deficiencies as identified through the
application of criteria adopted by the State Board of Education for evaluating the quality of
education in school districts. First priority for this funding shall be an allocation of funds to
those school districts whose education deficiencies led to the designation of "In Greatest
Need of Technical Assistance". Provided that the needs of such designated school districts
have been met, any remaining or unallocated current year funds may be used to assist other
school districts whose education deficiencies led to the lesser designation of "In Need of
Technical Assistance". In all cases, no portion of the allocated funds may be used by the
school district for administration purposes. Funds appropriated for Impaired School Districts/In
Need of Technical Assistance and allocated to the school districts in the prior fiscal year may be
retained and expended by the school districts for the same purpose during the current year.

19A.34. (SDE-EIA: XH-Evaluation/EIA Programs) Of the
funds appropriated in Part IA, Section 19X.H. for EIA Implementation, Other Operating
Expenses, $349,124 may only be used by the State Department of Education to support its
contracted program evaluations and the conduct of the State Board of Education's annual
assessment of EIA-funded education reforms and the related report, pursuant to Section 59-6-12.
The remaining $250,000 appropriated in Part IA, Section 19X.H. for EIA Implementation, Other
Operating Expenses shall be used to support the continuation of program and policy evaluations
and studies and to support the state's participation in the Middle Grades Project, at no less than
$100,000 and Professional Development Schools for prospective teachers. Provided further, for
the current fiscal year, $100,000 shall be provided to the South Carolina Educational Policy
Center for a collaborative project among the University of South Carolina, the Department of
Education and the EIA Select Committee for the purpose of providing for the technical aspects
of establishing a more thorough accountability system for public schools, school districts, and
the K-12 education system.

19A.35. (SDE-EIA: XK-CHE/Teacher Recruitment) Of the
funds appropriated in Part IA, Section 19X.K. for the Teacher Recruitment Program, the S. C.
Commission on Higher Education shall distribute a total of $1,065,408 to the S.C. Center for
Teacher Recruitment for a state teacher recruitment program, of which $200,000 must be used
for specific programs to recruit minority teachers, and shall distribute $206,000 to Benedict
College and $261,000 to S.C. State University to be used only for the operation of a minority
teacher recruitment program and therefore shall not be used for the operation of their established
general education programs. The S.C. Commission on Higher Education shall ensure that all
funds are used to promote teacher recruitment on a statewide basis, shall ensure the continued
coordination of efforts among the three teacher recruitment projects, shall review the use of
funds and shall have prior program and budget approval. The S. C. State University program, in
consultation with the Commission on Higher Education, shall extend beyond the geographic area
it currently serves. Annually, the Commission on Higher Education shall evaluate the
effectiveness of each of the teacher recruitment projects and shall report its findings and its
program and budget recommendations to the House and Senate Education Committees and the
Education Improvement Act Select Committee by December 1.

19A.36. (SDE-EIA: XK-DAODAS/DARE) Of the funds
appropriated in Part IA, Section 19X.K. Other State Agencies and Entities for the Department of
Alcohol and Other Drug Abuse Services, $150,000 must be transferred to the State Law
Enforcement Division for the operation of Drug Abuse Resistance Education (DARE) program
and for the training of DARE officers in the fifth grade classes of public schools in the state, and
$25,000 shall be used by the Department of Alcohol and Other Drug Abuse Services to provide
matching funds for local governments and school districts for the DARE program. A report on
the effectiveness of the DARE program must be provided by the Department of Alcohol and
Other Drug Abuse Services to the EIA Select Committee by October 1.

19A.37. (SDE-EIA: XK-Disbursements/Other Entities)
Notwithstanding the provisions of Sections 2-7-66 and 11-3-50, S.C. Code of Laws, it is the
intent of the General Assembly that funds appropriated in Part IA, Section 19X.K. Other State
Agencies and Entities shall be disbursed on a quarterly basis by the Department of Revenue and
Taxation directly to the state agencies and entities referenced except for the Teacher Loan
Program, Centers of Excellence, the EIA Select Committee and School Technology, which shall
receive their full appropriation at the start of the fiscal year from available revenue. The
Comptroller General's Office is authorized to make necessary appropriation reductions in Part
IA, Section 19X.K. to prevent duplicate appropriations. If the Education Improvement Act
appropriations in the agency and entity respective sections of the General Appropriations Act at
the start of the fiscal year do not agree with the appropriations in Part IA, Section 19X.K. Other
State Agencies and Entities, the "other funds" appropriations in the respective
agency and entity sections of the General Appropriations Act will be adjusted by the Comptroller
General's Office to conform to the appropriations in Part IA, Section 19X.K. Other State
Agencies and Entities.

19A.38. (SDE-EIA: XK-Status Offenders/John De La Howe)
The funds appropriated in Part IA, Section 19X.K. for the Status Offender Program shall be
distributed to John De La Howe School to expand residential programs to include court ordered
status offenders. Components of such a program shall include collaboration between the home
school district and the residential school and treatment or related services to the families of
students in placement.

19A.39. (SDE-EIA: XK-Student Loan Pgm/Teaching Loans
& Governor Scholarships) Of the EIA funds provided in Part IA, Section 19X.K. for the
Student Loan Program sufficient funding shall be made available under the Governor's Teaching
Scholarship Program for renewal loans only. Students receiving these scholarships are eligible
for the accelerated payback method provided for in Section 59-26-20(k). Any funds in the
Governor's Teaching Scholarship program which are not committed as of July 1 of the current
fiscal year may be used to fund student loans provided for in Section 59-26-20(k).

19A.40. (SDE-EIA: XL-Arts in Education) Funds appropriated
in Part IA, Section 19X.L. Arts Curricula shall be used to assist districts that have not received
funding for arts education during the four year pilot program; to sustain arts education initiatives
that began during the final year of the pilot program; and to support arts education curriculum in
the visual and performing arts which incorporates strengths from the Arts in Education pilot
sites.

19A.41. (SDE-EIA: XL-Continuous Improvement/Innovation)
Funds appropriated in Part IA, Section 19X.L. for Continuous Improvement/ Innovation and
allocated to the school districts for innovative initiatives in the prior fiscal year may be retained
and expended by the school districts for the same purpose during the current fiscal year.

19A.42. (SDE-EIA: XN-Parent Education) Funds appropriated
in Part IA, Section 19X.N. shall be used to fund those sites continuing to operate as Parent
Education technical assistance sites in FY 1996-97 at a level not less than eighty-five percent of
the amount received in the prior year or according to the Parenting/Family Literacy funding
allocations as established in Act 135, which ever is greater.

19A.43. (SDE-EIA: XN-Parenting/Family Literacy) Funds
appropriated in Part IA, Section 19X.N. for the Parenting/Family Literacy Programs and
allocated to the school districts for parenting projects in the prior fiscal year may be retained and
expended by the school districts for the same purpose during the current fiscal year.

19A.44. (SDE-EIA: XN-Parenting/Family Literacy/Child Abuse
Awareness & Accelerated Schools) Of the funds appropriated in Part IA, Section 19X.N.
for the Parenting/Family Literacy, $200,000 must be used for the Child Abuse Awareness and
Prevention Project at Winthrop University and $125,000 must be used for the Accelerated
Schools Project at the College of Charleston.

19A.45. (SDE-EIA: XN-Parenting/Family
Literacy/Cities-In-Schools) Notwithstanding any other provision of law, the State Department of
Education shall transfer $200,000 from the funds appropriated in Part IA, Section 19X.N.
Parenting/Family Literacy to Cities-In-Schools. These funds are to be utilized to provide
technical assistance to local communities in establishing Cities-In-Schools programs statewide.
Cities-In-Schools will provide annual reports to the State Department of Education which will
include: budget expenditure data, a listing of the communities served and the services provided.

19A.46. (SDE-EIA: XO-Problem Solving Skills) It is not the
intent of the General Assembly that the instruction in higher order thinking skills promote New
Age religion or any other religion, faith, or belief.

19A.47. (SDE-EIA: XR-Local School Innovation Fund) The
funds provided for the Local School Innovation Fund shall be distributed to the school districts
on a fifty percent average daily membership and fifty percent EFA basis and shall be expended
by the individual school in accordance with the school's long-range school improvement plan
pursuant to Act 135 of 1993. Funds shall be accounted for in accordance with the EIA program
or strategy.

19A.48. (SDE-EIA: X-Autistic Children Pilot Project) Of the
EIA funds appropriated to the Department of Education, $25,000 shall be provided to the
Pickens County School District for a pilot project to teach the Lovaas method to autistic children
in the Pickens County School District during the 1997-98 school year. The purpose of this pilot
is to help mainstream these children back into the classroom and to reduce or eliminate future
long term care costs. These funds are located in Part IA, Section 19, Program X.A. Alloc
EIA-Hndcap Std Srvc.

19A.49. (SDE-EIA: School Building Aid Funds Expenditure)
Funds appropriated in Part IA, Section 19F. of this Act or in a previous Appropriation Act for
school building aid may be expended by the school district without application to the State
Department of Education or approval from the State Board of Education. The Department of
Education shall require that school districts include in their annual audit a verification of
compliance with all applicable State laws associated with the use of these funds.

19A.50. DELETED

19A.51. DELETED

19A.52. DELETED

19A.53. DELETED

19A.54. DELETED

19A.55. (SDE-EIA: XC-National Board Certification Incentive)
The funds appropriated in 19XC for National Board Certification Incentive shall be used for
reimbursement of the certification fee and a one time bonus to those teachers who successfully
complete the certification process. Teachers who have become certified by the National Board
for Professional Teaching Standards prior to June 30, 1998, and under contract to teach in South
Carolina through 1998-99, are eligible to receive the one-time bonus.

19A.56. DELETED

19A.57. (SDE-EIA: SC-National Science Foundation Grants)
The funds appropriated in Part IA, Section 19X.C. for National Science Foundation Grants
matching funds shall be used for matching funds for those math and science hubs which
coordinate training in math and science with programs such as Tech Prep Consortia using
applied learning techniques and which assist teachers in using computers in the classroom.

19A.58. DELETED

19A.59. (SDE-EIA: School Building Aid) Of the funds
appropriated in Part IA, Section X.F. for School Building Aid, $500,000 shall be allocated on a
per pupil basis to the local school boards which do not have an index of taxpaying ability. This
does not include county boards of education.

H67 - SECTION 20 - EDUCATIONAL TELEVISION COMMISSION

20.1. (ETV: Grants/Contributions Carry Forward) The
Educational Television Commission shall be permitted to carry forward any funds derived from
grant awards or designated contributions and any state funds necessary to match such funds,
provided that these funds be expended for the programs which they were originally designated.

20.2. (ETV: School Reception Equipment Purchase) Of the
funds appropriated to ETV for School Services, $183,000 must be used exclusively for school
reception equipment supplies and maintenance.

20.3. (ETV: New Facility Equipment Purchases &
Renovations) Notwithstanding any other provisions of law, the Commission, with approval by
the Budget and Control Board, is allowed to sell or lease its facilities, equipment, programs,
publications, and other program related materials, and funds received therefrom may be used for
equipment purchases and renovations of the new facility.

20.4. (ETV: Adjacent Property Construction/Renovation) The
funds authorized for the Educational Television Commission in sub-subitem (b) of subitem (15),
Section 1, of Act 638 of 1988, may also be used for the construction and renovation of properties
adjacent to the state owned State-Record property. These funds must not be spent on facilities
located on the adjacent properties until they are owned by the Education Television Endowment
of South Carolina and until the State has an option to acquire these properties from the
Endowment for $1.00.

20.5. (ETV: Digital Satellite) The state's digital satellite video
transmission system will support public and higher education, enhance the statewide delivery of
health care services, improve public service, and assist state agencies with statewide personnel
training. To facilitate the achievement of these objectives, there is created a Video Resources
Oversight Council composed of representatives of the South Carolina Educational Television
Commission, the State Department of Education, the Commission on Higher Education, the
Human Services Coordinating Council, and the Budget and Control Board's Division of Budget
and Analyses, Office of Information Technology Policy and Management.

H71 - SECTION 21 - WIL LOU GRAY OPPORTUNITY SCHOOL

21.1. (WLG: Truants) The Opportunity School will incorporate
into its program services for students, ages 15 and over, who are deemed truant; and will
cooperate with the Department of Juvenile Justice, the Family Courts, and School districts to
encourage the removal of truant students to the Opportunity School when such students can be
served appropriately by the Opportunity School's program.

21.2. (WLG: Opportunity School Holiday) The Opportunity
School may reschedule holidays observed by other State employees during the academic year
and require its employees to take the holiday periods designated in the school calendar. All days
taken during these holiday periods not covered by a legal holiday must be charged to leave with
or without pay. The use of leave during such holiday periods will not be included in calculation
of daily rate compensation.

21.3. (WLG: GED Test) Students attending school at the Wil
Lou Gray Opportunity School that are 16 years of age and are unable to remain enrolled due to
the necessity of immediate employment or enrollment in post secondary education may be
eligible to take the General Education Development (GED) Test. Prior to taking the GED the
student must be pretested using the official General Education Development Practice Test and
score a minimum of 220.

21.4. (WLG: Deferred Salaries Carry Forward) Wil Lou Gray is
authorized to carry forward into the current fiscal year the amount of the deferred salaries and
employer contributions earned in the prior fiscal year for non-twelve month employees. These
deferred funds are not to be included or part of any other authorized carry forward amount.

21.5. (WLG: Improved Forestry Practices) The Trustees of the
Wil Lou Gray Opportunity School may carry out improved forestry practices on the timber
holdings of the school property and apply the revenues derived from them and any other revenue
source on the property for the further improvement and development of the school forest and
other school purposes.

H73 - SECTION 22 -VOCATIONAL REHABILITATION

22.1. (VR: Production Contracts Revenue) All revenues derived
from production contracts earned by the handicapped trainees of the Evaluation and Training
Facilities (Workshops) may be retained by the State Agency of Vocational Rehabilitation and
used in the facilities for Client Wages and any other production costs; and further, any excess
funds derived from these production contracts be used for other operating expenses and/or
permanent improvements of these facilities.

22.2. (VR: Reallotment Funds) To maximize utilization of
federal funding and prevent the loss of such funding to other states in the Basic Service Program,
the State Agency of Vocational Rehabilitation be allowed to budget reallotment and other funds
received in excess of original projections in following State fiscal years.

22.3. (VR: Basic Support Program Reconciliation) The General
Assembly hereby directs the Department of Vocational Rehabilitation to complete a
reconciliation of the cost to operate the Basic Support program related to the combination of
State and Federal funds available following the close of each Federal fiscal year. Such
reconciliation shall begin with the Federal fiscal year ending September 30, 1989. Federal funds
participation for that period shall be applied at the maximum allowable percentage and the level
of those funds on hand which have resulted from the over participation of State funds shall be
remitted to the General Fund within 120 days following the close of the Federal fiscal year. This
reconciliation and subsequent remission to the General Fund shall be reviewed by the State
Auditor to ensure that appropriate Federal/State percentages are applied. It is the intent of the
General Assembly that Federal/State percentages budgeted and appropriated shall in no way be
construed as authorization for the Department to retain the Federal funds involved.

22.4. (VR: User/Service Fees) Any revenues generated from
user fees or service fees charged to the general public or other parties ineligible for the
Department's services may be retained to offset costs associated with the related activities so as
to not affect the level of service for regular agency clients.

22.5. (VR: Meal Ticket Revenue) All revenues generated from
sale of meal tickets may be retained by the agency and expended for supplies to operate the
agency's food service programs or cafeteria.

22.6. (VR: Technology Assistance for Disabled) The
Department shall convene a committee of interested parties and agencies to develop a plan and
recommendations for the establishment of a program for assistive technology assistance for
members of the public with disabilities. The report shall be submitted to the General Assembly
and the Governor by December 1997.

H75 - SECTION 23 - DEAF AND THE BLIND,

SCHOOL FOR THE

23.1. (SDB: Physician Services) The School for the Deaf and
the Blind is authorized to contract for the services of a physician and to provide office space for
the physician to be used to treat both students of the school and private patients; the School shall
charge the physician a fair market rental value for the office space.

23.2. (SDB: Student Activity Fee) The School for the Deaf and
the Blind is authorized to charge to the parents of students at the school a student activity fee,
differentiated according to the income of the family. The required student activity fee shall not
exceed $40.00. Such revenue may be retained and carried forward into the current fiscal year
and expended for the purpose of covering expenses for student activities.

23.3. (SDB: Weighted Student Cost) The School for the Deaf
and the Blind shall receive through the Education Finance Act the average State share of the
required weighted student cost for each student newly admitted into the multi-handicapped
school with the recommendation of the local school district. The estimated State share shall
come directly from the State Board of Education at the beginning of the fiscal year to be adjusted
at the end of the fiscal year. This shall include any students admitted into the Reeducation
program for emotionally handicapped students.

23.4. (SDB: Admissions) Deaf, blind, multi-handicapped and
other handicapped students identified by the Board of Commissioners as target groups for
admission to the South Carolina School for the Deaf and the Blind may be admitted by the
School either through direct application by parents or on referral from the local school district.
The Board of Commissioners shall define the appropriate admissions criteria including mental
capacity, degree of disability, functioning level, age, and other factors deemed necessary by the
Board. All placement hearings for admission to the South Carolina School for the Deaf and the
Blind shall be organized by the School. The South Carolina School for the Deaf and the Blind
shall obtain information from the local school district concerning the needs of the student and
shall prepare an Individualized Education Plan for each student admitted. All parents applying
for admission of their children must sign a statement certifying that they feel the South Carolina
School for the Deaf and the Blind is the most appropriate placement which constitutes the least
restrictive environment for the individual student, based upon needs identified in the placement
meeting and the Individualized Education Plan. The decision concerning placement and least
restrictive environment shall be reviewed annually at the IEP Conference.

23.5. (SDB: Adult Vocational Program Fees) The School for
the Deaf and the Blind is authorized to charge appropriate tuition, room and board, and other
fees to students accepted into the Adult Vocational Program after July 1, 1986. Such fees will be
determined by the School Board of Commissioners, and such revenue shall be retained and
carried forward into the current fiscal year and expended by the School for the purpose of
covering expenses in the Adult Vocational Program.

23.6. (SDB: Mobility Instructor Service Fee) The School for
the Deaf and the Blind is authorized to charge a fee for the services of a mobility instructor to
provide service on a contractual basis to various school districts in the state, and such revenue
shall be retained and carried forward into the current fiscal year and expended by the School for
the purpose of covering expenses in the Blind School.

23.7. (SDB: Cafeteria Revenues) All revenues generated from
cafeteria operations may be retained and expended by the institution for the purpose of covering
actual expenses in cafeteria operations.

23.8. (SDB: School Buses) The school buses of the South
Carolina School for the Deaf and the Blind are authorized to travel at speeds up to 55 miles per
hour, not to exceed posted limit. No funds appropriated herein for equipment shall be used for
the purchase of governors for school buses of the South Carolina School for the Deaf and the
Blind.

23.9. (SDB: USDA Federal Grants) All revenues generated
from U.S.D.A. federal grants may be retained and expended by the SCSDB in accordance with
Federal regulations for the purpose of covering actual expenses in the cafeteria/food service
operations of the school.

23.10. (SDB: By-Products Revenue Carry
Forward) The School for the Deaf and the Blind is authorized to sell goods that are by-products
of the school's programs and operations, charge user fees and fees for services to the general
public: individuals, organizations, agencies and school districts, and such revenue may be
retained and carried forward into the current fiscal year and expended for the purpose of
covering expenses of the school's programs and operations.

23.11. (SDB: Pee Dee Resource Center for the
Deaf and the Blind) From the funds provided herein, the School for the Deaf and the Blind shall
provide $100,000 for the establishment of a Pee Dee Resource Center for the Deaf and the Blind
in Conway, S.C.

H79 - SECTION 24 - ARCHIVES AND HISTORY,

DEPARTMENT OF

24.1. (AH: Publication Distribution) The Commission is
authorized to supply one free copy of each new publication to the libraries of all institutions of
higher learning in the State, and to each member of the Commission and its Directors; to the
State Library; to each Public Library which is approved for a cash allotment by the South
Carolina State Library.

24.2. (AH: Use of Proceeds) The proceeds of training sessions,
sales of publications, reproductions of documents, repair of documents, research fees, handling
charges, and the proceeds of sales of National Register of Historic Places certificates and plaques
by the Archives Department shall be deposited in a special account in the State Treasury, and
may be used by this department to cover the cost of additional training sessions, publication,
reproduction expenses, repair expenses, and National Register of Historic Places certificates and
plaques, and selected Historic Preservation Grants.

24.3. (AH: Nat'l. Historic Preservation Program) The funds
earned from the United States Department of Interior by the South Carolina Department of
Archives and History for administering the National Historic Preservation Program in this State,
with the exception of the appropriate amount of indirect cost reimbursement to the General Fund,
must be deposited in a special account in the State Treasury, to be used by this department for a
Historic Preservation Grants program that will assist historic properties throughout South
Carolina. From this fund, the Department may contribute a sum, not to exceed $175,000
annually, to the South Carolina Archives and History Foundation to assist in activities designed
to support and enhance capital fund raising efforts. The Foundation will provide accounting for
these funds at the end of each fiscal year. Any funds donated to the Department by the
Foundation will be deposited in the Historic Preservation Grants Program account for use in
funding other state historic preservation projects.

24.4. (AH: Disposal of Materials) Upon prior approval of the
Commission, the agency may remove certain record and non-record materials from its
collections by gift to another public or nonprofit institution or by sale at public auction. This is a
supplemental form of disposition beyond that recognized in the Public Records Act for the
retention, copying, and destruction of public records; and it pertains only to those accessioned
Archives materials having a market value and which duplicate existing archival material, fall
outside the scope of the Archives collection policy, or have no further possible research value.
All funds realized through sale by public auction shall be placed in a special account to be used
for improved access to and preservation of the state archives collections. The Commission shall
report annually to the Budget and Control Board regarding such dispositions.

24.5. (AH: Technical Assistance and Review Fees) The
Department of Archives and History is authorized to charge a fee of $35 for providing technical
assistance in repairing and rehabilitating historically significant properties. The agency may also
charge fees based on the following fee schedule for investment tax credit reviews for historically
significant properties under the Federal Investment Tax Credit Program or other programs
requiring review of compliance with federal guidelines.

A fee of $250 is authorized for review of proposed or ongoing rehabilitation
work for all projects. Fees for review of completed rehabilitation work is based on the dollar
amount spent on the rehabilitation as follows:

If a review of proposed or on-going rehabilitation work has been made prior to
submission of the Request for Certification of Completed Work, the Department will deduct the
$250 from the total owed for review of completed rehabilitation work. In general, each
rehabilitation of a certified historic structure will be considered a separate project when
computing the amount of the fee.

Revenues from these fees will be retained, carried forward and used by this
department for Historic Preservation programs assisting historic properties throughout South
Carolina.

Revenues received from application fees for reviewing and certifying the
rehabilitation work on historic properties under the review compliance program will be retained
by the agency.

24.6. (AH: Funding to Maintain Archival Materials) Funds
remaining from the $300,000 appropriated in FY 1993-94 will be deposited in a special account
and carried forward to the next fiscal year. These funds will not be considered as part of the
10% carry forward in General Fund appropriations. Funds will be expended for supplies,
procedures, and equipment designed to preserve the Archives collection. The Senate Finance
and Ways and Means Committees shall be furnished a report annually detailing such
expenditures.

24.7. (AH: History Center Funding) Funds appropriated for the
Department of Archives and History, History Center must be used by the State Budget and
Control Board and the South Carolina Department of Archives and History who are directed to
proceed expeditiously with the design and construction of a replacement facility for the
Department of Archives and History's current facility on Senate Street in Columbia. This shall
include, but not be limited to, awarding a contract to begin construction. To finance the project,
state funding appropriated in this act or any other appropriation act shall be expended in the
order authorized funding becomes available for the History Center. Additional funding is to be
provided from other sources as may be determined by the General Assembly. If interim
financing is necessary, the State Treasurer may provide interim financing. Of the funds
appropriated in this act and/or any other funds appropriated in any other appropriation act for
construction of the South Carolina History Center, $2,000,000 shall support the National
Endowment for the Humanities Challenge Grant (CH-20306), be used to match Endowment
funds and be expended for the approved purposes of this grant, specifically construction of the
South Carolina History Center.

24.8. (AH: Historical Burial Ground) Of the funds appropriated
in Part IA, Section 24, $100,000 may be expended in FY 97-98 for historical burial ground
preservation. Of these funds, $10,000 shall be used for the Historical Burial Grounds in the City
of Spartanburg.

24.9. DELETED

H83 - SECTION 25 - CONFEDERATE RELIC ROOM

AND MUSEUM

25.1. (CRR: Artifacts Disposition) No artifacts owned by the
State in the collection and exhibits of the Confederate Relic Room shall be permanently removed
or disposed of except by a Concurrent Resolution of the General Assembly.

25.2. (CRR: Confederate Relic Room Location)
Notwithstanding Act 313 of 1919 and Section 59-117-60, Code of Laws of 1976, the War
Memorial Building erected at the corner of Sumter and Pendleton Streets in the City of Columbia
shall continue to be used by the Confederate Relic Room and the custody and control of the
building shall be forthwith transferred to the South Carolina Budget and Control Board.

25.3. (CRR: Research/Copy Fee) The Confederate Relic Room
is authorized to collect, retain and expend fees from research and photographic processing
requests and from the sale of promotional items.

25.4. (CRR: Appointment of Director) The Director of the
Confederate Relic Room shall be appointed, after consultation with the South Carolina Division
Commander of the Sons of the Confederate Veterans and the President of the South Carolina
Chapter of the United Daughters of the Confederacy, by the Executive Director of the South
Carolina Budget and Control Board and shall serve at his pleasure.

25.5. (CRR: Donations) The Confederate Relic Room is
authorized to receive donations of funds and artifacts and to expend these donations for the
restoration, preservation and display of the collection to supplement state monies appropriated
for such purposes.

25.6. (CRR: Confederate Museum Relocation) It is the intent of
the General Assembly that, as soon as space becomes available, the Confederate Museum shall
relocate to the Columbia Mills Building where it will be retained as a separate and distinct
facility, under the State Budget and Control Board.

H87 - SECTION 26 - LIBRARY, STATE

26.1. (LIB: Aid to Counties Libraries Allotment) The amount
appropriated in this section for "Aid to County Libraries" shall be allotted to each
county on a per capita basis according to the official United States Census for 1990, as aid to the
County Library. No county shall be allocated less than $15,000 under this provision. To receive
this aid, local library support shall not be less than the amount actually expended for library
operations from local sources in the second preceding year.

26.2. (LIB: Exempt Across-the-Board Reduction) In the
calculation of any across-the-board cut mandated by the Budget and Control Board or General
Assembly, the amount which the State Library pays to South Carolina Heritage Associates for
rent in the Mt. Vernon Mill shall be excluded from the State Library's base budget.

26.3. (LIB: Information Service Fees) The State Library may
charge a fee for costs associated with information delivery and retain such funds to offset the
costs of maintaining, promoting and improving information delivery services.

26.4. (LIB: Continuing Education Fees) The State Library may
charge a fee for costs associated with continuing education and retain such funds to offset the
costs of providing continuing education opportunities.

26.5. DELETED

H91 - SECTION 27 - ARTS COMMISSION

27.1. (ARTS: Professional Artists Contract) Where practicable,
all professional artists employed by the Arts Commission in the fields of music, theater, dance,
literature, musical arts, craft, media arts and environmental arts shall be hired on a contractual
basis as independent contractors. Where such a contractual arrangement is not feasible
employees in these fields may be unclassified, however, the approval of their salaries shall be in
accord with the provisions of Section 72.19 of this Act.

27.2. (ARTS: Special Revolving Account) Any income derived
from Arts Commission sponsored arts events or by gift, contributions, or bequest now in
possession of the Arts Commission including any federal or other funds balance remaining at the
end of the prior fiscal year, shall be retained by the Commission and placed in a special
revolving account for the Commission to use solely for the purpose of supporting the programs
provided herein. Any such funds shall be subject to the review procedures as set forth in Act
651 of 1978.

27.3. (ARTS: Grant Funds Equitable Disbursement) The
Commission shall make every effort to disburse state and federal grant funds to counties in the
most equitable manner possible. Counties that have demonstrated initiative in seeking support
and developing arts programs are to be given consideration when funds are disbursed.

27.4. (ARTS: Partial Indirect Cost Waiver) The Commission is
allowed to apply a 15% indirect cost rate for continuing federal grants for which they must
compete. The Commission shall apply the full approved negotiated rate to the Basic State Grant
and any new grants received by the Commission.

H95 - SECTION 28 - MUSEUM COMMISSION, STATE

28.1. (MUSM: Duplicate Materials) The Commission may give
(away) natural history materials in its possession for educational purposes, such materials being
less than museum quality or duplicative of materials owned by the Museum Commission.

28.2. (MUSM: Removal From Collections) The Commission
may remove objects from its museum collections by gift to another public or nonprofit
institution, by trade with another public or nonprofit institution, by public sale, by transfer to the
Commission's education, exhibit, or study collections or to its operating property inventory; or as
a last resort, by intentional destruction on the condition that the objects so removed meet with
one or more of the following criteria: (1) they fall outside the scope of the S. C. Museum
Commission's collections as defined in the Collection Policy dated January 20, 1993, (2) they
are unsuitable for exhibition or research, (3) they are inferior duplicates of other objects in the
collection, or (4) they are forgeries or were acquired on the basis of false information; funds
from the sale of such objects will be placed in a special revolving account for the Commission to
use solely for the purpose of purchasing objects for the collections of the State Museum.

28.3. (MUSM: Museum Store) The Museum Commission shall
establish and administer a museum store in the State Museum. This store may produce, acquire,
and sell merchandise relating to historical, scientific, and cultural sources. All profits received
from the sale of such merchandise shall be retained by the Museum Commission in a restricted
fund to be carried forward into the following fiscal year. These funds may be used for store
operations, publications, acquisitions, educational programs, exhibit production and general
operating expenses provided that the expenditures for such expenses are approved by the
General Assembly in the annual Appropriation Act.

28.4. (MUSM: Traveling Exhibits Fees) The Museum
Commission may rent or sell exhibits and exhibit components and the Commission may retain
such funds and use them to offset the cost of developing, maintaining, promoting, and improving
the changing exhibit program and to support general operations, provided that the expenditures
for such expenses are approved by the General Assembly in the annual Appropriation Act. Any
unexpended revenue from these sources may be carried forward into the current fiscal year to be
expended for the same purposes.

28.5. (MUSM: Retention of Revenue) The Museum
Commission may retain revenue received from admissions, program fees, facility rentals,
professional services, donations and other miscellaneous operating income and may expend such
revenue for general operating expenses provided that such expenditures are approved by the
General Assembly in the annual appropriations act. Any unexpended revenue from these
sources may be carried forward into the current fiscal year to be expended for the same purposes.

28.6. (MUSM: Across-the-Board Cut Exemption) In the
calculation of any across-the-board cut mandated by the Budget and Control Board or General
Assembly, the amount which the Commission pays to the South Carolina Heritage Associates for
rent of the Museum's rent shall be excluded from the Museum's base budget.

28.7. (MUSM: School Tour Fee Prohibition) The Commission
may not charge admission fees to groups of children from South Carolina who have made
reservations that are touring the museum as part of a school function.

J02 - SECTION 29 - HEALTH AND HUMAN SERVICES,

DEPARTMENT OF

29.1. (DHHS: Recoupment/Restricted Fund) The Department
of Health and Human Services shall recoup all refunds and identified program overpayments and
all such overpayments shall be recouped in accordance with established collection policy.
Further, the Department of Health and Human Services is authorized to maintain a restricted
fund, on deposit with the State Treasurer, to be used to pay for liabilities and improvements
related to enhancing accountability for future audits. The restricted fund will derive from prior
year program refunds. The restricted fund shall not exceed one percent of the total appropriation
authorization for the current year. Amounts in excess of one percent will be remitted to the
General Fund.

29.2. (DHHS: Long Term Care Facility Reimbursement Rate)
The Department, in calculating a reimbursement rate for long term care facility providers, shall
obtain for each contract period an inflation factor, developed by the Budget and Control Board,
Division of Budget and Analyses. Data obtained from Medicaid cost reporting records
applicable to long term care providers will be supplied to the Budget and Control Board,
Division of Budget and Analyses. A composite index, developed by the Budget and Control
Board, Division of Budget and Analyses will be used to reflect the respective costs of the
components of the Medicaid program expenditures in computing the maximum inflation factor to
be used in long term care contractual arrangements involving reimbursement of providers. The
Division of Budget and Analyses of the Budget and Control Board shall update the composite
index so as to have the index available for each contract renewal.

The Department may apply the inflation factor in calculating the reimbursement
rate for the new contract period from zero percent (0%) up to the inflation factor developed by
the Division of Budget and Analyses.

29.3. (DHHS: Medical Assistance Audit Program Remittance)
The Department of Health and Human Services shall remit to the General Fund an amount
representing fifty percent (allowable Federal Financial Participation) of the cost of the Medical
Assistance Audit Program as established in the State Auditor's Office of the Budget and Control
Board Section 17D. Such amount shall also include appropriated salary adjustments and
employer contributions allocable to the Medical Assistance Audit Program. Such remittance to
the General Fund shall be made monthly and based on invoices as provided by the State
Auditor's Office of the Budget and Control Board.

29.4. (DHHS: Medicaid Income Limitation) The income
limitation for the Medicaid Program shall continue to be three hundred percent of the SSI single
payment maximum.

29.5. (DHHS: Third Party Liability Collection) The Department
of Health and Human Services is allowed to fund the net costs of any Third Party Liability and
Drug Rebate collection efforts from the monies collected in that effort.

29.6. DELETED

29.7. (DHHS: Medicaid State Plan) Where the Medicaid State
Plan is altered to cover services that previously were provided by 100% state funds, the
Department can bill other agencies for the state share of services provided through Medicaid.
The Department will keep a record of all services affected and submit periodic reports to the
Senate Finance and House Ways and Means Committees.

29.8. (DHHS: Medically Indigent Assistance Fund) The
Department is authorized to expend disproportionate share funds to all eligible hospitals with the
condition that all audit exceptions through the receipt and expenditures of these funds are the
liability of the hospital receiving the funds. To the extent that any disproportionate share funds
authorized under this section exceed a specific hospital's cost, such funds must be spent on health
care services by a governmental entity. These funds must be used to reimburse the hospital for
expenses in providing uncompensated indigent care.

29.9. (DHHS: Admin. Days/Swing Beds Reduction Prohibition)
Funds appropriated herein for hospital administrative days and swing beds shall not be reduced
in the event the agency cuts programs and the services they provide.

29.10. (DHHS: Nursing Home Sanctions) The
Department of Health and Human Services is authorized to establish an interest bearing
Restricted Fund with the State Treasurer, to deposit fines collected as a result of nursing home
sanctions. The Department may use these funds to protect the life, health, and property of
patients in nursing homes, including payment for the costs of relocation of residents to other
facilities, maintenance of operation of a facility pending correction of deficiencies or closure.

29.11. (DHHS: Reimbursement Formula
Changes) To the extent the Department can increase Medicaid federal matching funds through
changes in reimbursement formulas for other state providers, the Department, with the
permission of the state providers, is authorized to retain these funds in an earmarked account on
deposit with the State Treasurer and use these funds to cover unanticipated health and human
services expenditures. The Department should not hold any other state provider liable for
disallowances resulting from these changes. Any funds realized as a result of this proviso shall
be reported as part of the following year budget process.

29.12. (DHHS: Managed Care) The Insurance
Law of South Carolina and the regulations promulgated thereunder shall not apply to partially
capitated, primary care providers, insofar as such groups or individuals are defined by and agree
to provide health care services under South Carolina's Medicaid Managed Care Program.

29.13. DELETED

29.14. (DHHS: Child Care and Development
Block Grant) The Department of Health and Human Services (DHHS) shall use the funds
appropriated to provide matching funds for the new Child Care and Development Block Grant.
DHHS, in coordination with the Department of Social Services, shall use these child care funds
to support the state's welfare reform program (Family Independence Act of 1995) and to provide
temporary child care services to other low income working families.

29.15. (DHHS: Residential Care Optional
Supplement) From the appropriation made herein for General Assistance, the Department will
supplement the income of individuals who reside in those licensed residential care facilities that
have an approved Optional Supplement Request with the Department. Individuals who reside in
those residential care facilities with approved Optional Supplement Requests must also qualify
as aged, blind or disabled under the definitions of Public Law 92-603, U.S. Code, or who would
qualify except for income limitations or residence in a residential care facility reclassified as a
public institution by the Social Security Administration. For the period of the current fiscal year,
the Department will, based on availability of funds, supplement the income of the above defined
group up to a maximum of $795.00 per/month and the residential care facilities are authorized to
charge a fee of $762.00 per/month for the defined group. Each individual in the defined group is
allowed a $33.00 per/month personal needs allowance. The Department will issue the recipient
an Optional Supplement check in an amount that will permit the recipient to comply with the
above payments; however, if the federal government grants a cost of living increase to Social
Security and Supplemental Security Income recipients, the maximum amount that the facility is
permitted to charge is $762.00. The Department shall establish the maximum number of
Optional Supplement Requests that can be funded and will develop a waiting list based on
present and future applications received from each county. Each facility that participates in the
Optional Supplement Program must submit a notarized operating cost report. The cost
information will include all income and operating costs for the facility. The Department will
develop a time schedule for reports to be submitted. Facilities failing to submit costs
information and adhere to the time schedule will not be eligible to serve Optional Supplement
residents. Information received by the Department will be consolidated and submitted to the
Senate Finance Committee and the Ways and Means Committee. The Department shall explore
any options for maximizing state matching dollars in the provision of services to residents of
licensed community residential care facilities and options for reviewing the quality and adequacy
of care and report to the Senate Finance Committee, the Ways and Means Committee and the
Governor's Office no later than January 15, 1998. All services rendered to a Residential Care
Facility resident must be in compliance with state health licensing laws and regulations.

* 29.16. (DHHS: Family Planning) Of
the funds appropriated for Family Planning, $156,000 shall be used for long term contraceptives
and matched with Federal funds to the fullest extent possible.

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

29.17. (DHHS: Medical Home for Clients) The
Department of Health and Human Services (DHHS) shall establish a program to encourage
physicians to establish a "medical home" for Medicaid clients. This program is intended to
provide continuity of care for Medicaid clients, increase access to primary care services for
Medicaid clients and ensure increased and continued participation in the Medicaid program by
physicians who render primary care services. The DHHS shall have the responsibility to define
a "medical home" and have signed agreements with physicians willing to meet the requirements
of providing a "medical home." Physicians signing agreements to become medical homes for
Medicaid will receive enhanced reimbursement to be defined by DHHS. Federally Qualified
Health Centers (FQHCs) and Rural Health Centers (RHCs) must meet the requirements set forth
for a "medical home" in order to continue to receive cost based reimbursement from DHHS.

29.18. (DHHS: Nursing Services) In the
delivery of services in the Medicaid program, LPN's are authorized to provide services in home
or residential settings without on-site supervision by an RN provided the RN has approved the
plan of care. RN's are authorized to approve a plan of care which provides for LPN's to provide
services in a home or residential setting without direct on-site supervision.

J04 - SECTION 30 - HEALTH AND ENVIRONMENTAL

CONTROL, DEPARTMENT OF

30.1. (DHEC: County Health Departments Funding) Out of the
appropriation provided in this section for "Public Health Districts", the sum of
$25,000 shall be distributed to the county health departments by the Commissioner, with the
approval of the Board of Department of Health and Environmental Control, for the following
purposes:

1. To insure the provision of a reasonably
adequate public health program in each county.

2. To provide funds to combat special health
problems that may exist in certain counties.

3. To establish and maintain demonstration
projects in improved public health methods in one or more counties in the promotion of better
public health service throughout the State.

4. To encourage and promote local participation
in financial support of the county health departments.

5. To meet emergency situations which may
arise in local areas.

6. To fit funds available to amounts budgeted
when small differences occur.

The provisions of this proviso shall not supersede or suspend the provisions of
Section 13-7-30 of the 1976 Code.

30.2. (DHEC: County Special Projects) Counties may continue
to fund special projects in conjunction with the County Health Departments. Salaries for county
special project employees, including merit increases and fringe benefits, shall be totally funded
by the county(s) involved. County special project employees shall not be under the state merit
system or state compensation plan and they shall receive their compensation directly from the
county(s).

30.3. (DHEC: County Health Units) Federal funds made
available to the Department of Health and Environmental Control for the allocation to the
counties of the State for operation of county health units be allotted on a basis approved by the
Board of the Department of Health and Environmental Control and the amount of State funds
appropriated herein for "Public Health Districts", except for salary increases, shall be
allocated on a basis such that no county budget shall receive less than the amount received in the
prior fiscal year.

30.4. (DHEC: Camp Burnt Gin) Private donations or
contributions for capital improvements at Camp Burnt Gin shall be deposited in a restricted
account and carried forward until sufficient amounts are available for such improvements. Any
expenditures from the account must first be approved by the Budget and Control Board and the
Joint Bond Review Committee.

30.5. (DHEC: Children's Rehabilitative Services) The
Children's Rehabilitative Services shall be required to utilize any available financial resources
including insurance benefits and/or governmental assistance programs, to which the child may
otherwise be entitled in providing and/or arranging for medical care and related services to
physically handicapped children eligible for such services, as a prerequisite to the child receiving
such services.

30.6. (DHEC: Cancer/Hemophilia) Notwithstanding any other
provisions of this act, the funds appropriated herein for cancer treatment services $1,168,409 and
the hemophilia assistance program, $66,477 shall not be transferred to other programs within the
agency and when instructed by the Budget and Control Board or the General Assembly to reduce
funds within the department by a certain percentage, the Department may not act unilaterally to
reduce the funds for any cancer treatment program and hemophilia assistance program provided
for herein greater than such stipulated percentage.

30.7. (DHEC: Speech & Hearing) The Department of
Health and Environmental Control shall utilize so much of the funds appropriated in this section
as may be necessary to continue the Speech and Hearing programs.

30.8. (DHEC: Local Health Departments) As of July 1, 1981,
the counties of the state will be relieved of contribution requirements for salary, fringe benefits
and travel reimbursement to local health departments. The amount of $5,430,697 is appropriated
for county health department salaries, fringe benefits and travel. These funds and other state
funds appropriated for county health units may, based upon need, be utilized in either salary or
travel categories. Each county shall provide all other operating expenses of the local health
department in an amount at least equal to that appropriated for operations for each county in
Fiscal Year 1981. In the event any county makes uniform reductions in appropriations to all
agencies or departments for maintenance and operations, exclusive of salaries and fringe
benefits, a like reduction shall be made in funds appropriated for the operating expenses of the
local health department.

30.9. (DHEC: Insurance Refunds) The Department of Health
and Environmental Control is authorized to budget and expend monies resulting from insurance
refunds for prior year operations for case services in the following programs: Health Promotion,
Preventive Health Services, and Maternal and Child Care.

30.10. (DHEC: Emergency Medical Services)
Funds appropriated herein for Emergency Medical Services, shall be allocated to the Counties
for the purpose of improving or upgrading the system, and shall be allocated to the
EMS-Regional Councils for administration of training programs and technical assistance to the
local EMS units and the funds shall be allocated by a ratio of 45 percent to the counties and 55
percent to the EMS Regional Councils. The Department of Health and Environmental Control
shall develop guidelines and administer the system to make allocations within each region based
on demonstrated need and local match. The $1 million increase provided herein shall not require
local match and local match shall not be a factor in determining the allocation. The $1 million
increase shall be allocated by a ratio of 81 percent to counties, 12 percent to EMS Regional
Councils and 7 percent to the state EMS office. Funds appropriated $1,955,195 to Emergency
Medical Services shall not be transferred to other programs within the Department's budget. In
addition, when instructed by the Budget and Control Board or the General Assembly to reduce
funds by a certain percentage, the Department may not reduce the funds appropriated for EMS
Regional Councils or Aid to Counties greater than such stipulated percentage.

30.11. (DHEC: Rape Crisis Centers) Of the
amounts appropriated in Primary Care-Case Services, $651,107 shall be used for rape crisis
centers around the state. Distribution of funds shall be based on DHEC Rape Crisis services
standards and expenditures monitored by DHEC.

30.12. (DHEC: Sickle Cell Blood Sample
Analysis) $16,000 is appropriated in Maternal and Child Care for the Sickle Cell Program for
Blood Sample Analysis and shall be used by the Department to analyze blood samples submitted
by the four existing regional programs - Region I, Barksdale Sickle Cell Anemia Foundation in
Spartanburg; Region II, Clark Sickle Cell Anemia Foundation in Columbia; Region III,
Committee on Better Racial Assurance Hemoglobinopathy Program in Charleston; and the
Orangeburg Area Sickle Cell Anemia Foundation.

30.13. (DHEC: Sickle Cell Programs)
$475,000 is appropriated for Sickle Cell program services, 47% is to be designated for the
Community Based and Newborn Screening Programs (Sickle Cell) and shall be apportioned as
follows:

(1) 48% is to be divided equally between the existing
Community Based Sickle Cell Programs located in Spartanburg and Columbia; and

(2) 52% is for the Community Based Sickle Cell Program in
Charleston.

The funds shall be used for providing prevention programs, educational
programs, testing, counseling and newborn screening. The balance of the total appropriation
must be used for Sickle Cell Services operated by Children's Rehabilitative Services of DHEC.
The funds appropriated to the community based sickle cell centers shall be reduced to reflect any
percent reduction assigned to the Department of Health and Environmental Control by the
Budget and Control Board; provided, however, that the Department may not act unilaterally to
reduce the funds for the Sickle Cell program greater than such stipulated percentage. The
Department shall not be required to undertake any treatment, medical management or health care
follow-up for any person with sickle cell disease identified through any neonatal testing
program, beyond the level of services supported by funds now or subsequently appropriated for
such services. No funds appropriated for ongoing or newly established sickle cell services may
be diverted to other budget categories within the DHEC budget.

30.14. (DHEC: Genetic Services) The sum of
$222,390 appearing under the Maternal and Child Care Section of this Act shall be appropriated
to and administered by the Department of Health and Environmental Control for the purpose of
providing appropriate genetic services to medically needy and underserved persons. Such funds
shall be used by the Department to administer the program and to contract with appropriate
providers of genetic services. Such services will include genetic screening, laboratory testing,
counseling, and other services as may be deemed beneficial by the Department, and these funds
shall be divided equally among the three Regional Genetic Centers of South Carolina, composed
of units from the Medical University of South Carolina, the University of South Carolina School
of Medicine, and the Greenwood Genetic Center.

30.15. (DHEC: Revenue Carry Forward
Authorization) The Department of Health & Environmental Control is hereby authorized to
collect, expend and carry forward revenues in the following programs: Sale of Goods
(confiscated goods, arm patches, etc.), sale of meals at Camp Burnt Gin, sale of publications,
brochures, photo copies and certificate forms, including but not limited to, pet rabies vaccination
certificate books, sale of listings and labels, sale of State Code and Supplements, sale of films
and slides, sale of maps, sale of items to be recycled, including used motor oil and batteries, etc.,
and collection of registration fees for non-DHEC employees.

30.16. (DHEC: Pharmacist Permits) The
Department of Health and Environmental Control shall be exempted from the requirements of
Section 40-43-370 of the 1976 Code of Laws, as amended, as it relates to the requirement that a
pharmacist employed by the Department may supervise no more than two adjacent districts. The
Department of Health and Environmental Control shall not be exempt from any other provisions
of Section 40-43-370.

30.17. (DHEC: Safe Drinking Water Act) In
order to comply with the provisions of the federal Safe Drinking Water Act, the Department is
authorized to collect a fee from each public water system. The fee must be based upon the
number of taps through which the system provides water to its customers The fees collected
must be returned to the department for the purposes of implementing the Safe Drinking Water
Act Regulatory Program including engineering plan review, compliance inspections, and
enforcement; and for providing technical assistance and monitoring and laboratory analytical
services for the public water systems of the State. The fee shall be as follows:

For the purposes of this fee schedule, tap is defined as a service connection, the point at which
water is delivered to the consumer (building, dwelling, commercial establishment, camping
space, industry, etc.) from a distribution system, whether metered or not and regardless of
whether there is a user charge for consumption of the water.

The Department shall submit an annual report to the Senate Finance Committee,
House Ways & Means Committee, South Carolina Section American Water Works
Association and the Municipal Association detailing activities funded from safe drinking water
fees. The report shall include the amount of fees collected from each waterworks and the listing
of expenditures from those fees. The expenditures shall be accompanied by a list of benefits the
waterworks receive from the State as a result of the fees. In providing monitoring and laboratory
analytical services, DHEC will consider least cost alternatives including contracting with private
laboratories when appropriate. DHEC shall include all applicable direct and indirect costs in
developing cost comparisons with private laboratories.

Penalties:

All fees remaining unpaid thirty (30) days after billing will be issued a late
notice with no penalty due, however, it will contain advisement of penalty for non-payment after
sixty (60) days. Fees remaining unpaid after sixty days will be assessed a ten percent (10%)
penalty. Fees remaining unpaid at the end of ninety (90) days will be assessed a twenty-five
percent (25%) penalty in addition to the sixty day penalty. The sum of both penalties may not
exceed five thousand dollars. Persons delinquent under this paragraph will be notified by the
Department by certified mail at their last known address.

All returned checks will be subject to a returned check fee as outlined in the
DHEC Administrative Policy and Procedures Manual. This penalty will be in addition to those
outlined above.

No monitoring will be conducted on systems with fees unpaid at the end of
ninety (90) days.

30.18. (DHEC: Medicaid Nursing Home Bed
Days) Pursuant to Section 44-7-84(A) of the 1976 Code, the maximum number of Medicaid
patient days for which the Department of Health and Environmental Control is authorized to
issue Medicaid nursing home permits is 4,170,965.

30.19. DELETED

30.20. (DHEC: Septic Tank & Retail Food
Establishments Inspection Fees) The Department shall charge a septic tank inspection fee of
$60.00. This fee shall be paid prior to the evaluation of any site for which an application for a
septic tank permit has been made. The Department shall charge annual inspection fees for retail
food establishments. Retail food establishments obtaining a permit for the first time shall be
charged an inspection fee of $60.00. These fees must be paid prior to the issuance of a permit.
After the first year, renewal inspection fees shall be based on gross sales of food and food
products for the facility's previous business year as follows:

The Department shall revise the annual inspection fee schedule for food service
establishments to provide for additional breakdowns.

Annual renewal fees shall be due thirty (30) days from the billing date. A
penalty charge of $30.00 for all facilities shall be assessed for inspection fees that are past due.
A second penalty shall be assessed for inspection fees sixty (60) days past due.

Owners of retail food establishments shall furnish previous business year sales
information on request of the Department.

The following retail food establishments shall be exempt from fee charges:

Retail food establishments that are operated by a public or private school
(kindergarten through grade 12); or are operated by a child care facility.

Retail food establishments operated by health care facilities that are regulated
by the Department.

Retail food establishments that are operated by other state agencies or local
governments that provide food for patients, clients or inmates.

Retail food establishments that are operated by non-profit organizations for the
purpose of providing meals or food to needy persons at little or no cost; or for the purpose of
raising money for a charitable purpose.

An entity claiming an exemption from fee charges may be required to submit
annually to the Department written evidence that it meets one or more of the above criteria.

30.21. (DHEC: Vital Records Fees) The
Department of Health and Environmental Control shall revise fees for Vital Records. The
following fee schedule shall be implemented effective July 1, 1991 and the revenue generated
shall be retained and expended by the agency to offset the cost of operations of the Vital Records
System.

Fees collected at the county health departments for records searches,
amendments of records, delayed birth registration and additional copies of the same record
requested at the same time shall be distributed as follows: 50% to the county health department
and 50% to Vital Records Central Office. * Any fee increase above the state fiscal year
1997 fee structure shall be returned to the Vital Records Central Office (Office of Public Health
Statistics and Information Systems, Division of Vital Records).

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

30.22. (DHEC: Health Licensing Fee) Funds
resulting from an increase in the Health Licensing Fee Schedule shall be retained by the
Department to fund increased responsibilities of the health licensing programs.

30.23. (DHEC: Controlled Substances
Registration Fees) Provided, that the fees assessed for registration under Title 44, Chapter 53,
Article 3 of the amended Code (the Controlled Substances Act) and set forth under Paragraph
103 of R61-4 of the amended Code shall be increased as follows:

(1) The fees set in R61-4, Paragraph 103(a), (c), (d), (e), and (h)
at $75.00 per annum are increased to $100.00 per annum.

(2) The fees set in R61-4, Paragraph 103(b) at $75.00 per annum
are increased to $275.00 per annum.

(3) The fees set in R61-4, Paragraph 103(f) at $360.00 per
annum are increased to $600.00 per annum.

(4) The fees set in R61-4, Paragraph 103(g) at $240.00 per
annum are increased to $500.00 per annum.

(5) The Department of Health and Environmental Control shall
modify R61-4, Paragraph 103 to conform to the fees set forth in this proviso.

(6) This proviso shall become effective for the 1992-1993
registration period and shall continue in force until modified by revision of R61-4, Paragraph
103.

30.24. (DHEC: Medical & Dental Loan
Program) Notwithstanding other provisions of law, unobligated funds in the Medical &
Dental Loan program may be expended for other health service programs.

30.25. (DHEC: Infectious Waste Contingency
Fund) The Department of Health and Environmental Control is authorized to use not more than
$75,000 from the Infectious Waste Contingency Fund per year for personnel and operating
expenses to implement the Infectious Waste Act.

30.26. (DHEC: Nursing Home Medicaid Bed
Day Permit) Beginning July 1, 1993, when transfer of a Medicaid patient from a nursing home
is necessary due to violations of state or federal law or Medicaid certification requirements, the
medicaid patient day permit shall be transferred with the patient to the receiving nursing home.
The receiving facility shall apply to permanently retain the medicaid patient day permit within
sixty days of receipt of the patient.

30.27. (DHEC: SC Mining Council) The
amount appropriated in this section for "Mining and Reclamation", "Per
Diem" and "Travel" may be used for reimbursement of expenses and per diem
for the South Carolina Mining Council.

30.28. (DHEC: Mineral Sets Revenue) The
Department is authorized to charge a reasonable fee for mineral sets. Funds generated from the
sale of mineral sets may be retained by the Department in a revolving account with a maximum
carry forward of $2,000 and must be expended for mineral set supplies and related mining and
reclamation educational products.

30.29. (DHEC: Spoil Easement Areas Revenue)
The Department is authorized to collect, retain and expend funds received from the sale of and/or
third party use of spoil easement areas, for the purpose of meeting the State of South Carolina's
responsibility for providing adequate spoil easement areas for the Atlantic Intracoastal Waterway
in South Carolina. Any unexpended balance on June 30, of the prior fiscal year would be carried
forward into the next fiscal year and expended for the same purposes.

30.30. (DHEC: Performance Bond Forfeiture
Revenue Carry Forward) The Department is authorized to retain and expend revenue derived
from forfeiture of performance bonds to cover the cost of restoring damaged critical areas. Any
unexpended balance on June 30, of the prior fiscal year would be carried forward into the next
fiscal year and expended for the same purposes.

30.31. (DHEC: Special Permits)
Notwithstanding any other provisions of law or Rule and Regulation where the State of South
Carolina is exposed to compensation requirements of the Constitutions, the Department is hereby
authorized to issue special permits pursuant to Section 48-39-290(D) for habitable structures not
to be larger than 5,000 square feet of heated space.

30.32. (DHEC: Permit Application) Permit
Application fees collected pursuant to Section 48-39-145 of the 1976 Code must be retained by
the department and used to establish the Coastal Resources Access Fund to be administered by
the Office of Ocean and Coastal Resource Management. The office shall make matching grants
from the fund on a 50/50 basis to local governments in the South Carolina Coastal Zone for
projects which enhance the public's use and enjoyment of coastal resources.

30.33. (DHEC: Per Visit Rate Bureau of Home
Health and Long Term Care) The SCDHEC is authorized to compensate non-permanent,
part-time employees on a fixed rate per visit basis. Compensation on a fixed rate per visit may
be paid only to Bureau of Home Health and Long Term Care employees for whom the
Department receives per visit reimbursement from other sources. These individuals will provide
direct patient care in a home environment. The per visit rate may vary based on the discipline
providing the care and the geographical location of services rendered. Management may pay
exempt or non-exempt employees as defined by the Fair Labor Standards Act only when they are
needed to work. Individuals employed in this category may exceed twelve months, but are not
eligible for State benefits except for the option of contributing to the State Retirement System.

30.34. (DHEC: Grand Strand Beach
Renourishment Match) Any funds appropriated by the state for the Grand Strand Beach
Renourishment Project cannot be expended until the U.S. Army Corps of Engineers certifies to
the Department of Health & Environmental Control that the federal funds and the required
funds from local governments for construction of the Grand Strand Beach Renourishment
Project are available for expenditure.

30.35. (DHEC: Cardiac Care Services)
Notwithstanding any other provision of law, any facility which: (1) obtained a certificate of
need for diagnostic cardiac catheterization before July 10, 1992; (2) filed to obtain a certificate
of need for open-heart surgical services before January 1, 1993; and (3) has a written open-heart
surgery back-up agreement with a facility that provides an open-heart surgery service located
within a thirty-minute one-way drive may provide therapeutic cardiac catheterizations. The
facility's authority to continue to provide therapeutic cardiac catheterizations terminates sixty
days after the effective date of any changes to the criteria contained in the State Health Plan for
issuing a certificate of need for open heart surgery. A facility may continue to provide
therapeutic cardiac catheterizations after the sixty-day period only if the facility has applied for a
certificate of need for open heart surgery under the new criteria within sixty days of the new
criteria's effective date. The facility's authority to continue to provide therapeutic cardiac
catheterizations during the period while its certificate of need application under the new criteria
is pending terminates upon the issuance of a final non-appealable decision on the application for
a certificate of need under the new criteria.

30.36. (DHEC: Allocation Patient Days) The
Department will allocate additional Medicaid patient days authorized above the previous fiscal
year's level as provided in Proviso 30.18 based on a percentage of need indicated by the
Community Long Term Care waiting list. Not withstanding any other provision of law, of the
additional patient days authorized above the previous year's level as provided in Proviso 30.18,
the Department may approve additional nursing home patient days/beds not to exceed 11,680
patient days/32 beds for those facilities in those rural counties that have (1) only one nursing
home; (2) have no more than eighty-eight nursing home beds; (3) have more than 22 percent of
the population age sixty-five and over with an income below the poverty level; and, (4) are
below the mean of the South Carolina median family income. A Certificate of Need application
for these rural counties must be received by the Department no later than August 1, 1996, and
the Department will reserve Medicaid patient days for up to ninety percent of the number of
additional beds.

30.37. (DHEC: Underground Storage Tank
Data) The Department of Health and Environmental Control should initiate actions in FY
1997-98, to ensure the availability of accurate and complete tank population and financial data,
that are necessary to complete a report by March 1999, to the State Reorganization Commission,
for the purpose of determining whether continued funding from the State Underground
Petroleum Environmental Response Bank (SUPERB) thru December 31, 2026, for eligible
owners of underground storage tank owners, is in the best interest of the State. The Department
should begin to collect accurate and complete information addressing the financial status of the
SUPERB Account and the State Financial Responsibility Fund (SFRF) Account, including
detailed information regarding the status of reported releases in terms of completed and on-going
work. Information should be such that the Department is able to determine whether the
SUPERB and SFRF Funds are actuarially sound and that revenues are sufficient to address
needed site rehabilitation and third party claims, such that the Department is able to continue
funding the most serious and highest ranked projects as determined using the Risk Based
Corrective Action ranking system. The Department's actions should also result in compiling
accurate and complete information regarding the State's tank population, in terms of the extent to
which the tank population meets Environmental Protection Agency standards which become
effective December 1998; the number of registered tanks in the state; the number of registered
tanks per location, per owner; and the availability and affordability of private insurance for
owners of underground storage tank owners.

30.38. (DHEC: Babynet Sliding Fee Scale)
The Department of Health and Environmental Control shall delay implementation of a sliding
fee scale for Babynet recipients until after June 30, 1998. During the current fiscal year, the
Department shall study the impact of implementing a sliding fee scale. The study shall include,
but not be limited to, cost benefits versus cost of administering such a fee scale, impact on
participating Babynet agencies, and impact to potential Babynet clients. The agency shall seek
input from all affected parties. The agency shall submit a report of its findings, along with
recommendations, to the General Assembly no later than January 30, 1998.

30.39. (DHEC: Certificate of Public
Advantage) Notwithstanding Regulation 61-31, Health Care Cooperative Agreements and other
provisions of law, should the Department of Health and Environmental Control issue a
Certificate of Public Advantage, the applicant will pay to the Department, an annual monitoring
fee to cover the actual cost of audits and monitoring. This fee shall be used by the Department in
whatever manner solely for the purpose of monitoring Certificates of Public Advantage as set
forth in Section 44-7-570(A).

30.40. (DHEC: Beach Restoration)
Appropriations for Beach Restoration Projects which are certified by the Department as excess
to the final State share of project costs shall be allocated by the Department to other beach
restoration projects on a priority basis in accordance with R.30-20.

30.41. (DHEC: Lead Screening Program) Of
the funds appropriated to the Department of Health and Environmental Control, the director is
authorized to allocate $100,000 to the continuation of the lead paint screening program.

30.42. DELETED

J12 - SECTION 31 - MENTAL HEALTH, DEPARTMENT OF

31.1. (DMH: Medicare Revenue) All Federal Funds received by
the Department of Mental Health from patients' Medicare benefits shall be considered as patient
fees under the provision of Act No. 1276 of the 1970 Acts (provision for the issuance of bonds to
be repaid from patient fees) except that the Department shall remit to the General Fund of the
State $290,963 from such funds to support the appropriation for administrative costs of the
collection of Medicare benefits. The Department shall retain and expend up to $3 million of all
Medicare Revenue earned prior to July 1, of the prior fiscal year, but received in the current
fiscal year from cost recovery efforts, all additional prior earnings shall be remitted to the
General Fund, except that the cost and fees of identifying and collecting such additional
Medicare Revenue to which the Department is entitled may be paid from funds actually collected
from such efforts.

31.2. (DMH: Paying Patient Account) Notwithstanding any
other provision of law and in addition to other payments provided in Part I of this Act, the
Department of Mental Health is hereby directed during the current fiscal year to remit to the
General Fund of the State the amount of $3,800,000 to be paid from the surplus funds in the
paying patient account which has been previously designated for capital improvements and debt
service under the provisions of Act 1276 of 1970. It is the intent of the General Assembly to
assist the Department to reduce and eventually eliminate this obligation to the General Fund.

31.3. (DMH: Patient Fee Account) Notwithstanding any other
provisions of law and in addition to other payments provided in Part I of this Act, the
Department of Mental Health is hereby authorized during the current fiscal year, to provide the
funds budgeted herein for $6,214,911 for Departmental operations, $400,000 for the Continuum
of Care, $10,000 for the Alliance for the Mentally Ill, $250,000 for S.C. SHARE Self Help
Association Regarding Emotions, $50,000 for Palmetto Pathways, $50,000 for New Day
Clubhouse and up to $685,000 for day-to-day operations at the Campbell Nursing Home , from
the Patient Fee Account which has been previously designated for capital improvements and
debt service under provisions of Act 1276 of 1970. The Department of Mental Health is
authorized to fund the cost of Medicare Part B premiums from its Patient Fee Account up to
$150,000. The South Carolina Alliance for the Mentally Ill shall provide an itemized budget
before the receipt of funds and quarterly financial statements to the Department of Mental
Health. The South Carolina Self-Help Association Regarding Emotions shall provide an
itemized budget before the receipt of funds and quarterly financial statements to the Department
of Mental Health. DMH is authorized to use unobligated Patient Paying Fee Account funds for
community transition programs. The funds made available shall be utilized consistently with the
Transition Leadership Council's definition of severely mentally ill children and adults. The
Department shall report their use of these funds to the Senate Finance Committee and the House
Ways and Means Committee. This amendment is made notwithstanding other obligations
currently set forth in this proviso.

31.4. (DMH: Paying Patient Fee Hall Institute)
Notwithstanding any other provisions of law and in addition to other payments provided in this
section, the Department of Mental Health is authorized to utilize up to $1,530,520 of the funds
collected from paying patients hospitalized in the acute care units of the William S. Hall
Psychiatric Institute to defray the cost of training mental health personnel and psychiatric
research at that facility pursuant to Section 44-11-10(2), Code of Laws of South Carolina, 1976;
these being a part of the funds previously designated for capital improvements and debt service
under the provisions of Act 1276 of 1970.

31.5. (DMH: Institution Generated Funds) The Department of
Mental Health is authorized to retain and expend institution generated funds which are budgeted.

31.6. (DMH: Harris Psychiatric Hospital Carry Forward) The
Budget and Control Board shall authorize the Department of Mental Health to carry forward any
remaining funds allocated for Harris Psychiatric Hospital in the prior fiscal year to assure
full-funding of Harris Psychiatric Hospital in the current fiscal year. The Department is
authorized to utilize these funds to provide for community screening and service for potential
admission to Harris Psychiatric Hospital.

31.7. (DMH: VA Nursing Home Carry Forward) The
Department is authorized to carry forward into the current year, funds allocated in the prior fiscal
year for the operation of the Campbell Nursing Home. Funds carried forward shall be expended
for the same purpose during the current fiscal year.

31.8. (DMH: Transfer of Patients to DDSN) DMH is authorized
to transfer to the Department of Disabilities & Special Needs, state appropriations to cover
the state match related to expenditures initiated as a result of the transfer of appropriate patients
from DMH to the Department of Disabilities & Special Needs. Notwithstanding any other
provisions of law and in addition to other payments as authorized in this Act, DMH is also
authorized to utilize up to $500,000 from the Patient Fee Account to help defray costs of these
transferees.

31.9. (DMH: Harris Hospital Funds Transfer Notification) Prior
to any transfer of funds from the current budget for Harris Hospital, the Department shall notify
the Chairmen of the Senate Finance Committee and the House Ways and Means Committee.

31.10. (DMH: Sale of Property Revenue) The
Department may retain revenues associated with the sale of property and may expend these
funds on capital improvements approved by the Joint Bond Review Committee and the Budget
and Control Board.

31.11. (DMH: Department Owned Housing
Rental) The Department of Mental Health may charge other than fair market value for rental of
department-owned housing when such rentals assist in the recruitment and training of mental
health professionals.

31.12. DELETED

J16 - SECTION 32 - DISABILITIES AND SPECIAL NEEDS,

DEPARTMENT OF

32.1. (DDSN: Work Activity Programs) All revenues derived
from production contracts earned by mentally retarded trainees in Work Activity Programs be
retained by the South Carolina Department of Disabilities & Special Needs and carried
forward as necessary into the following fiscal year to be used for other operating expenses and/or
permanent improvements of these Work Activity Programs.

32.2. (DDSN: Sale of Excess Real Property) The Department is
authorized to retain revenues associated with the sale of excess Department-owned real property
and may expend these funds to purchase land and construct community residences to serve the
mentally retarded. In the construction of new facilities, the Department shall follow all the
policies and procedures of the Budget and Control Board and the Joint Bond Review Committee.

32.3. (DDSN: Prenatal Diagnosis) Revenues not to exceed
$126,000 from client fees, credited to the debt service fund and not required to meet the
Department's debt service requirement, may be expended only in the current fiscal year to
promote expanded prenatal diagnosis of mental retardation and related defects by the Greenwood
Genetic Center.

32.5. (DDSN: Medicare Reimbursements) The Department may
continue to budget Medicare reimbursements to cover operating expenses of the program
providing such services.

32.6. (DDSN: Departmental Generated Revenue) The
Department is authorized to continue to expend Departmental generated revenues that are
authorized in the budget.

32.7. (DDSN: Patient Day Fee) The Department may exclude
Medicaid revenues from the Intermediate Care Facilities for the Mentally Retarded's patient day
fee from indirect cost recovery payments.

32.8. DELETED

32.9. (DDSN: Retargeting Resources/FTE Reduction) The
Department may implement, in consultation with the Office of Human Resources of the Budget
and Control Board, a pilot program to retarget resources to include provisions for a separation
incentive payment for Department employees which may include the employer portion of health
and dental benefits not to exceed one year. Any pilot program developed under this provision
will involve voluntary participation from employees and will be funded within existing
appropriations. The specific provisions of the pilot program will be approved by the DDSN
Commission and the Director of the Division of Budget and Analyses. The Department will
report the results to the Budget and Control Board by March 15, 1998.

J20 - SECTION 33 - ALCOHOL AND OTHER DRUG ABUSE

SERVICES, DEPARTMENT OF

33.1. (DAODAS: School Intervention Activity) $1,149,204 of
the amount appropriated as "Total Distribution to Subdivisions" in Program III,
Division of Programs and Services is intended to be used for the School Intervention activity and
none of this sum shall be used by the Department for the employment of personnel, except that
funds may be used to employ one supervisory coordinator for this program.

33.2. (DAODAS: Training & Conference Revenue) The
Department may charge fees for training events and conferences. The revenues from such events
shall be deposited in the General Fund at the end of the state fiscal year once vendor expenses
pertaining to such events have been met by the Department.

33.3. (DAODAS: Other Funded New Positions) The
Department of Alcohol & Other Drug Abuse Services may fill the other funded personnel
authorized in this section only if such funds are available at the time the new positions are to be
filled.

33.4. (DAODAS: Chemical Dependency Programs) The
Department shall use one-time funding to reduce the recidivism rate of juvenile offenders
through a transitional treatment program for addictions. The Department will review the ability
of parents of juvenile offenders to off-set the costs of this program through a sliding scale
fee-for-service and report on this in the evaluation of this program. In addition, the Department
will develop a second plan for a coordinated, non-duplicative service delivery network through
comprehensive utilization of community-wide services and coordination of chemical dependency
funding streams. * The Department will present a report to the Governor's Office, to the
Senate Finance Committee and to the House Ways and Means Committee no later than
December 1, 1997. The Department is authorized to spend one half of the appropriated funds for
this project for the first six months of the current fiscal year. The remaining funds for this
project for the second half of the fiscal year may only be spent upon the written approval of the
Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means
Committee after receipt and written approval of the progress report submitted to them on
December 1, 1997. The Department is required to include in their progress report due December
1, 1997, budgetary information on the matching funds for the programs from all sources
including, but not limited to, state, federal, county and other local funds.

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

K05 - SECTION 34 - PUBLIC SAFETY, DEPARTMENT OF

34.1. (DPS: Special Events Traffic Control) The Highway
Patrol must not charge any fee associated with special events for maintaining traffic control and
ensuring safety on South Carolina public roads and highways unless approved by the General
Assembly. Nothing shall prohibit the Treasury of the State from accepting voluntary payment of
fees from private or public entities to defray the actual expenses incurred for services provided
by the Department of Public Safety.

34.2. (DPS: Miscellaneous Revenue) Notwithstanding any
other provisions of law, revenue received from the sale of meals to employees, sale of student
locks and materials, sale of legal manuals and other publications, postal reimbursement, third
party Commercial Driver License testing, photo copying, sale of miscellaneous refuse and
recyclable materials, tuition from military breathalyzer courses, coin operated telephones,
revenue from E-911 and Coroner training, revenue from psychological screening, private college
tuition, and revenue from canteen operations and building management services, revenue from
regional and national marketing of the "Crime-to-Court" and other Department of
Public Safety and E.T.V. series shall be retained by the Department and expended in budgeted
operations for food services, expansion of the Department's E.T.V. program, professional
training, fees and dues, clothing allowance and other related services or programs as the Director
of the Department of Public Safety may deem necessary.

The Department of Public Safety shall report annually to the General Assembly
the amount of miscellaneous revenue retained and carried forward.

34.3. (DPS: Detective/Security Fee) The Department of Public
Safety is hereby authorized to charge and collect additional license and registration fees for
private detective businesses, private security businesses, including employees of these
businesses, and companies which provide private security on their own premises. The funds
generated will be retained by the Department and used for the purpose of providing additional
security in the Capitol Complex area.

34.4. DELETED

34.5. DELETED

34.6. DELETED

34.7. (DPS: Federal, Other Flow Through Funds) In order to
complete projects begun in a prior fiscal year, the Department of Public Safety is authorized to
expend Federal and Earmarked Funds in the current fiscal year for expenditures incurred in the
prior fiscal year.

34.8. (DPS: Publish County DMV Local Telephone Number)
From the funds appropriated in Part IA, Section 34 to the Department of Public Safety, it is the
intent of the General Assembly that the Division of Motor Vehicles in each county should have a
local telephone number that is published.

34.9. (DPS: Cost Recovery Fee) The Department of Public
Safety may collect fees to recover the costs of the production, purchase, handling and mailing of
documents, publications, records and data sets, and such funds shall be retained by the agency.

34.10. (DPS: License Fees) Notwithstanding
any provision of Title 56 of the 1976 Code relating to the disposition of revenues, all revenues
derived under Chapter 56 credited to the Department of Public Safety must be credited to the
General Fund of the state, except for those fees collected to recover the costs of the production,
purchase, handling and mailing of documents, publications, records and data sets, and such funds
shall be retained by the agency.

** 34.11. (DPS: Transfer of Funds) Of
amounts appropriated for the Department of Public Safety, an amount equal to one hundred
thousand dollars must be transferred to Midlands Technical College for the Motorcycle Rider
Safety Education Program.

** Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
**Indicates those vetoes overridden by the General Assembly on June 17, 1997.

34.12. (DPS: Motor Carrier Registration Fees)
Notwithstanding any other provisions of law, all positions previously transferred to the
Department of Public Safety from the Public Service Commission and the Department of
Revenue whose duties include the administration and enforcement of Articles 3 and 5, of
Chapter 23 of Title 58, shall be funded from the motor carrier registration fees collected by the
Department that previously were collected by the Public Service Commission.

34.13. (DPS: New License Plates) The
Department of Public Safety is authorized to charge $3.00 for postage and handling associated
with the mailing of new license plates. All funds collected pursuant to this proviso will be used
to cover the costs of postage, handling and the production of license plates. All unexpended
funds at year end collected under this proviso may be retained and carried forward by the
Department to be used for the same purpose.

34.14. (DPS: Witness Fee) The Department of
Public Safety is hereby authorized to charge a witness fee of $100.00 per hour, up to $400.00 per
day for each Multi-disciplinary Accident Investigation Team (MAIT) member testifying in civil
matters which do not involve the State as a party in interest. This fee shall be charged in
addition to any court prescribed payment due as compensation or reimbursement for judicial
appearances and deposited into a designated revenue account.

34.15. (DPS: Sale of Photos or Digitized
Images) The Department of Public Safety may enter into contracts to provide copies of
photography, electronically stored information, stored photographs or digitized images. Such
items are to be used for the prevention of fraud, including but not limited to, use in mechanisms
intended to prevent the fraudulent use of credit cards, debit cards or other forms of financial or
voter transactions. The use of such photographs, electronically stored or digitized images
obtained by private companies or other entities is limited to the verification of the identity of the
holder. Funds derived from the contractual sale of these copies are retained by the Department of
Public Safety to defray the costs of providing same.

34.16. DELETED

34.17. DELETED

L04 - SECTION 35 - SOCIAL SERVICES, DEPARTMENT OF

35.1. (DSS: Fee Retention) The Department of Social Services
shall recoup all refunds and identified program overpayments and all such overpayments shall be
recouped in accordance with established collection policy. Funds of $800,000 collected under
the Child Support Enforcement Program (Title IV D) which are State Funds shall be remitted to
the State Treasurer and credited to the General Fund of the State. All state funds above
$800,000 shall be retained by the Department to fund Self-Sufficiency and Family Preservation
and Support initiatives.

35.2. (DSS: Recovered State Funds) The Department shall
withhold a portion of the State Funds recovered, under the IV-D Program, for credit to the
General Fund in order to allow full participation in the Federal "set off" program
offered through the Internal Revenue Service, the withholding of unemployment insurance
benefits through the South Carolina Employment Security Commission and reimbursement for
expenditures related to blood testing. Such funds may not be expended for any other purpose.
The Department of Social Services be allowed to utilize the State share of Federally required
application fees, collected from Non-AFDC clients, in the administration of the Child Support
Enforcement Program. Such funds may not be expended for any other purpose. However, this
shall not include Child Support Enforcement Program incentives paid to the program from
Federal Funds to encourage and reward cost effective performance. Such incentives are to be
reinvested in the program to increase collections of support at the State and County levels in a
manner consistent with federal laws and regulations governing such incentive payments. The
Department shall not use Clerk of Court incentive funds to replace agency operating funds. Such
funds shall be remitted to the appropriate state governmental entity to further child support
collection efforts.

35.3. (DSS: Foster Children Burial) The expenditure of funds
allocated for burials of foster children shall not exceed one thousand five hundred dollars per
burial.

35.4. (DSS: Assistance Payments Client List) The names of
persons benefiting from assistance payments under the several programs of the Department of
Social Services shall be available to other state agencies, if not in conflict with federal
regulations.

35.5. DELETED

35.6. (DSS: Child Day Care Facilities) Notwithstanding the
provisions of Act 184 of 1977 as amended relating to child day care facilities, the Department is
granted the authority to grant provisional licenses, provisional approvals and provisional
registrations to new facilities covered under Articles II, III, and V of Act 184 of 1977 as
amended for a period no longer than a year and to grant or extend provisional licenses,
provisional approvals and provisional registrations to existing facilities covered under Articles
II, III, and V of Act 184 of 1977 as amended but in no case beyond July 1, of the next fiscal year.

35.7. (DSS: Employee Supplement) No county shall
supplement the salary of any DSS employee.

35.8. (DSS: Battered Spouse Funds) Appropriations included in
Subprogram II E entitled Battered Spouse shall be allocated through contractual agreement to
providers of this service. These appropriations may also be used for public awareness and
contracted services for victims of this social problem including the abused and children
accompanying the abused. Such funds may not be expended for any other purpose nor be
reduced by any amount greater than that stipulated by the Budget and Control Board or the
General Assembly for the agency as a whole.

35.9. (DSS: Court Examiner Service Exemption) In order to
prevent the loss of Federal Funds to the State, employees of the Department of Social Services
whose salaries are paid in full or in part from Federal Funds will be exempt from serving as court
examiners.

35.10. (DSS: Accounts Receivable Procedures)
The Department of Social Services will establish, and collect accounts receivable in accordance
with appropriate and applicable Federal regulations.

35.11. (DSS: Attorney or Guardian Ad Litem
Fees) Effective July 1, of the current fiscal year, any monies appropriated for the payment of
attorneys' fees or Guardian ad Litem fees in either abuse and neglect, termination of parental
rights, or judicial review cases arising under Section 20-7-480, et. seq. of the SC Code of Laws,
(1976, as amended), and adult protective services cases under Section 43-29-5, et. seq. of the SC
Code of Laws, (1976, as amended), shall only be paid in accordance with DSS policy which
shall include limits on awards and procedures for payment, in due consideration of the Agency's
budgetary limitations and specific funds allocated for such purposes. No other fees or costs
associated with the above referenced cases shall be paid unless expressly authorized by statute,
court rules or DSS policy and provided that sufficient funds have been allocated for such
purposes.

35.12. (DSS: AFDC Advance Funds) The
Department of Social Services is authorized to advance sufficient funds during each fiscal year
from the Aid to Families with Dependent Children Assistance Payments general fund
appropriations to the Aid to Families with Dependent Children Assistance Payments federal
account only for the purpose of allowing a sufficient cash flow in the federal account. The
advance must be refunded no later than April of the same fiscal year. Upon the advance of funds
as provided herein, the Comptroller General is authorized to process the July voucher for the
funding of benefit checks.

35.13. (DSS: Fee Schedule) The Department of
Social Services shall be allowed to charge fees and accept donations, grants, and bequests for
social services provided under their direct responsibility on the basis of a fee schedule approved
by the Budget and Control Board. The fees collected shall be utilized by the Department of
Social Services to further develop and administer these program efforts.

35.14. (DSS: Mentally Disabled Supplement)
From the appropriation made herein for General Assistance, the Department may elect to
supplement the income of individuals who reside in foster homes or supported independent
living arrangements certified by the Department of Mental Health and who qualify as mentally
disabled under the definitions of Public Law 92-603, U.S. Code, or who would qualify except for
income limitations with the supplement being at the same rate as for other individuals who
qualify for General Assistance. The Department shall contract with the Department of Mental
Health to ensure that the payments of General Assistance to persons who would not otherwise
qualify except for this proviso shall be transferred to the Department from the appropriations
made to the Department of Mental Health.

35.15. (DSS: Electronic Benefits Transfer
System) The funds appropriated herein for the Electronic Benefits Transfer System Project
(EBT) shall be used for the development, start-up, and evaluation of the system. The
Department of Social Services is directed to proceed with planning for the expansion of the use
of the EBT system for other government benefits delivery, beginning with the Aid to Families
with Dependent children program. The agency shall submit a status report on the
implementation of the system to the members of the Senate Finance and House Ways and Means
Committees by July 1, of the current fiscal year.

35.16. (DSS: Food Stamp Fraud) The state
portion of funds recouped from the collection of recipient claims in the AFDC and Food Stamp
programs shall be retained by the Department. A portion of these funds shall be distributed to
local county offices for emergency and program operations. The remaining funds will be used
by the Department to fund our Food Stamp Reinvestment Plan and other program operations.

35.17. (DSS: AFDC - Immunizations
Certificates) The Department shall require all AFDC applicants and/or recipients to provide
proof of age appropriate immunizations for children. If such immunizations have not been
administered, the Department shall assist in referring applicants to appropriate county health
departments to obtain the immunizations.

35.18. (DSS: Fees for Court Witness in Child
Welfare Services) Effective July 1, 1994, any monies appropriated for the payment of court
testimony in either abuse and neglect, termination of parental rights, or judicial review cases
arising under Section 20-7-480, et. seq. of the SC Code of Laws, 1976, as amended, and adult
protective service cases under Section 43-35-10(9), et. seq. of the SC Code of Laws, 1976, as
amended, shall only be paid in accordance with DSS policy which shall include limits on awards
and procedures for payment, in due consideration of the Agency budgetary limitations and
specific funds allocated for such purposes. Provided further that DSS shall pay up to a
maximum hourly rate to Licensed Psychologists, Social Workers, Nurses, Ministerial
Counseling, Family and Marriage Counselors of $60 for counseling and $60 for expert witness
fees, to include travel time and DSS shall pay up to a maximum hourly rate to Physicians of
$125 for expert witness fees, to include travel time.

35.19. (DSS: Foster Care Fingerprint Reviews)
Notwithstanding the provisions of Section 20-7-1640, of the SC Code of Laws, 1976, as
amended, the Department is authorized to pay from funds appropriated in this section the costs
of Federal Bureau of Investigation fingerprint reviews for foster care families recruited, selected
and licensed by the Department.

35.20. (DSS: County Directors' Pay) With
respect to the amounts allocated to the Department of Social Services for Employee Pay Increase
in 17C.13 of this Act, the Department of Social Services is authorized to allot funds for pay
increases to individual County Directors and Regional Directors in classified positions without
uniformity. Pay increases for DSS County Directors and Regional Directors shall be
administered in accordance with the guidelines established by the Budget and Control Board for
Executive Compensation System and other non-academic unclassified employees. Any
employees subject to the provisions of this paragraph shall not be eligible for any other
compensation increases provided in 17C.13 of this Act.

35.21. (DSS: Use of Funds Authorization)
Department Investigative Units shall be authorized to receive and expend funds awarded to these
Units as a result of a donation, contribution, prize, grant, and/or court order. These funds shall
be retained by the Department on behalf of the Investigative Units and deposited in a separate,
special account and shall be carried forward from year to year and withdrawn and expended as
needed to fulfill the purposes and conditions of the donation, contribution, prize, grant, and/or
court order, if specified, and if not specified, as may be directed by the Director of the
Department of Social Services. These accounts shall not be used to supplant operating funds in
the current or future budgets. The agency shall report to the Senate Finance Committee and
Ways and Means Committee by January 30 of the current fiscal year on the amount of funds
received and how expended.

L12 - SECTION 36 - JOHN DE LA HOWE SCHOOL

36.1. (JDLHS: Status Offender Carry Forward) To facilitate the
period of initial program start-up, unexpended EIA status offender funds distributed to John de la
Howe School from the Department of Education may be carried forward and used for the same
purpose.

36.2. (JDLHS: Fee Schedule Study) John de la Howe must
submit a report to the Senate Finance Committee and the Ways and Means Committee by
January 15, 1998 on the feasibility of developing and implementing a schedule of sliding fees
for families receiving services provided by the agency. This report shall include, but not be
limited to, recommendations related to the type, applicability, and amount of such fees, income
verification procedures and agency collection efforts for non-payment of fees.

L24 - SECTION 37 - BLIND, COMMISSION FOR THE

37.1. (BLIND: Matching Federal Funds) For the current fiscal
year the amount appropriated in this section under Program II for Rehabilitative Services is
conditioned upon matching by federal funds to the maximum amount available under the Federal
Vocational Rehabilitation Program.

37.2. (BLIND: Horticulture Revenue) Revenues derived from
the production of horticulture products by clients of the Adult Adjustment and Training Center
may be retained by the Commission and used in the facility for client payments and other
production costs.

L32 - SECTION 38 - HOUSING, FINANCE AND

DEVELOPMENT AUTHORITY

38.1. (HFDA: Federal Rental Assistance Administrative Fee
Carry Forward) All federal rental assistance administrative fees shall be carried forward to the
current fiscal year for use by the Authority in the administration of the federal programs under
contract with the Authority. No State funds are to be used in the administration of these
programs.

38.2. (HFDA: Program Expenses Carry Forward) For the prior
fiscal year monies withdrawn from the Authority's various bond-financed trust indentures and
resolutions, which monies are deposited with the State Treasurer to pay program expenses, may
be carried forward by the Authority into the current fiscal year. By October 1, of the current
fiscal year, a report shall be submitted to the Senate Finance Committee and the House Ways and
Means Committee, detailing the amount carried forward and a detailed budget for its
expenditure.

L36 - SECTION 39 - HUMAN AFFAIRS COMMISSION

39.1. (HAC: Sale of Publication) Up to $4,000 in revenue
derived from the sale of `The Blueprint' may be retained and expended for the purpose of
conducting future Human Affairs Forums. Any remaining balance may be expended for the
same purpose.

39.2. (HAC: Human Affairs Forum Carry Forward) Revenue
derived from donations and registration fees received for attendance at the Human Affairs Forum
may be retained and carried forward into the current fiscal year and expended for the purpose of
conducting future Human Affairs Forums.

39.3. (HAC: Training Revenue) The Human Affairs
Commission may recoup and retain expenses incurred while providing training and technical
assistance; reimbursement derived may be used for general operations during the fiscal year.
Charges may not exceed the cost of the program.

39.4. (HAC: Additional EEOC Funds) For the current fiscal
year, the Human Affairs Commission must refund additional funds received from EEOC in
excess of the annual contractual agreement to the General Fund.

L46 - SECTION 40 - MINORITY AFFAIRS, COMMISSION ON

40.1. (CMA: Private Contributions and Sponsorship) Monies
derived from private sources for agency research, forums, training and institutes may be retained
and expended by the Commission for the said purpose. Any remaining balance may be carried
forward and expended for the same purpose.

40.2. (CMA: Carry Forward Registration Fees) Revenue
derived from registration fees received from training and institutes may be retained and carried
forward for the purpose of conducting future training and institutes.

40.3. (CMA: Carry Forward Grant Awards) Revenues pooled
from public and private sources for the purpose of awarding grants to address problems in the
minority community may be retained and carried forward by the Commission.

N04 - SECTION 41 - CORRECTIONS, DEPARTMENT OF

41.1. (CORR: Clothes/Transportation Upon Discharge)
Whenever an inmate shall be discharged from the Department of Corrections, the State Board of
Corrections thereof shall furnish such inmate with a suit of common clothes, if deemed

necessary, and transportation from the Department of Corrections to his home, if his home be
within this State, or to the County from which he was sentenced if his home be without this
State.

41.2. DELETED

41.3. (CORR: Farm Program) Notwithstanding any provision of
law to the contrary, the proceeds from the sale of all excess agricultural products produced by
the Farm Program of the South Carolina Department of Corrections shall be retained by that
agency to be utilized in the expansion and modernization of the program.

41.4. (CORR: Sale of Products) In addition to sales currently
authorized by statute, all articles or products produced by the Department of Corrections may be
sold on the open market; those articles or products not provided for by statute, are sold and
distributed through wholesalers and jobbers within this State.

41.5. (CORR: Habilitation Unit for Developmentally Disabled)
Notwithstanding any other provision of law to the contrary, the excess revenue generated by the
Adult Work Activity Center be returned to the Department of Corrections to be utilized in the
expansion and modernization of the Habilitation Unit for the Developmentally Disabled.

41.6. (CORR: Canteen Operations) Revenue derived wholly
from the Canteen operations within the Department of Corrections on behalf of the inmate
population, may be retained and expended by the Department for the continuation of the
operation of said Canteens and the welfare of the inmate population. The Canteen operation is to
be treated as an enterprise fund within the Department of Corrections and is not to be subsidized
by State Appropriated Funds.

41.7. (CORR: Contract for Services) Upon initiation by the
South Carolina Department of Corrections, and upon prior approval by the Budget and Control
Board, the Department of Corrections may contract for any and all services, but such services
must (1) demonstrate reasonably comparable, cost-effectiveness to traditional methods of
construction, (2) result in long-term operational cost-savings, (3) result in the provision of a new
facility of sufficient bed, program, and support space more expeditiously than traditional
methods, and (4) be subject to the year-to-year appropriation process of the General Assembly
and state procurement procedures.

41.8. (CORR: Contract Performance Funded Literacy
Instruction) Of funds appropriated for the Palmetto Unified School District Contractual
Services, $75,000 must be used for contracting with private sector education providers for
performance-funded literacy instruction. Contractors would be paid only for student progress on
quantifiable performance measurements.

41.9. (CORR: E.H. Cooper Trust Fund) Notwithstanding any
provision of law to the contrary, the Commissioner of the Department of Corrections, at his
discretion, may utilize interest generated from the fund created by interest which accrued to the
E.H. Cooper Trust Fund and was retained by the Department of Corrections in prior years. The
Commissioner may use these funds for special projects benefiting the general welfare of all
inmates in the custody of the Board of Corrections.

41.10. (CORR: Work Release Program
Transportation Fee) The Department is authorized to charge a one dollar ($1.00) per day
transportation fee to participants in the work release program.

41.11. (CORR: Instructional Salaries) The
certified instructional personnel of the Department of Corrections shall receive a percentage
increase in their annual salary for the current fiscal year equal to the percentage allocated to the
instructional personnel throughout the State.

41.12. DELETED

41.13. DELETED

41.14. DELETED

41.15. (CORR: Recreational Scoreboards and
Bleachers) The recreational scoreboards and bleachers determined to be surplus by the South
Carolina Department of Corrections may be donated by the Department to the school district in
which the donating institution is located. In the event the school district does not have need for
such equipment, it may then be offered to any school district within the county in which the
institution is located.

41.16. (CORR: Funding Through State
Criminal Assistance Program) All funds received by the State from the United States
Department of Justice, State Criminal Alien Assistance Program, for care and custody of illegal
aliens housed in the state correctional facilities shall be retained by the South Carolina
Department of Corrections to offset incurred expenses.

41.17. (CORR: Medical Expenses) The
Department of Corrections shall be authorized to charge inmates for any medical treatment or
consultation provided at the request of or initiated by the inmate. Inmates shall not be charged
for psychological or mental health visits.

41.18. (CORR: Surplus Farm Produce) The
Department of Corrections shall be authorized to sell surplus farm produce, with any funds
generated to be utilized by the Department to offset costs of the farming operation.

41.19. (CORR: Remedial Education Funding)
A criminal offender committed to the custody of the Department of Corrections, who has been
evaluated to function at less than an eighth grade educational level, or less than the equivalent of
an eighth grade educational level, may be required by Department officials to enroll and actively
participate in academic education programs. Funds appropriated to the Department of
Corrections for educational programs shall be prioritized to assure such remedial services are
provided.

41.20. (CORR: Tire Retreading Program
Restriction) The tire retreading program at the Lieber Correctional Institution shall be limited to
the marketing and sale of retreads to only state governmental entities.

N08 - SECTION 42 - PROBATION, PAROLE AND PARDON,

DEPARTMENT OF

42.1. (DPPP: Hearing Fee) The Department of Probation,
Parole and Pardon Services shall receive a hearing fee under a plan approved by the Budget and
Control Board.

42.2. (DPPP: Electronic Monitoring Fee Assessment) Every
person placed on electronic monitoring shall be assessed a fee to be determined by the
Department in accordance with SC Code Section24-21-80, so long as he remains in the
electronic monitoring program. The payment of the fee must be a condition of parole or
probation and a delinquency of two months or more in making payments may operate as a
revocation. All fees generated by this assessment shall be retained by the department to support
the electronic monitoring program and carried forward for the same purpose.

42.3. (DPPP: Electronic Monitoring Program) Of the funds
appropriated to the Department of Probation, Parole and Pardon Services for community
corrections, other operating expenses, the Department may expend up to $1,333,333 for the
expansion of existing community electronic monitoring of criminal offenders under the
jurisdiction of the Department. In addition, before September 1, 1996, the Department shall
develop and submit a plan to the Senate Corrections and Penology Committee and the House
Judiciary Committee identifying additional offender populations to be placed on electronic
monitoring and any necessary statutory revisions or additional funding required in order to fully
implement this plan. Offenders placed on electronic monitoring must be selected pursuant to
criteria developed by the Department, and no offenders may be placed on electronic monitoring
unless the offender is in a population that is within the purview of the Department's electronic
monitoring authority.

42.4. DELETED

N12 - SECTION 43 - JUVENILE JUSTICE, DEPARTMENT OF

43.1. (DJJ: Meal Ticket Revenue) The revenue generated from
sale of meal tickets by the Department of Juvenile Justice shall be retained and carried forward
into the current fiscal year by the agency and expended for the operation of the agency's
cafeterias and food service programs.

43.2. (DJJ: Interstate Compact/Juvenile Restitution Programs
Revenue) The revenue returned to the Interstate Compact Program and the revenue returned
from the Juvenile Restitution Program shall be retained and carried forward into the current
fiscal year by the Agency and expended for the Operation of the respective program areas.

43.3. (DJJ: Educational Funds Audit) Notwithstanding the
provisions of the Education Finance Act, the South Carolina Department of Juvenile Justice shall
have its educational funds audited by the Office of the State Auditor pursuant to a schedule
established by the State Auditor, and said audit shall be sufficient to satisfy the timetable for
audits required in Regulation 43175.

43.4. (DJJ: Children's Projects Revenue) Funds generated from
the projects undertaken by children under the supervision of the Department of Juvenile Justice
may be retained by the Department and utilized for the benefit of those children. Such funds
may be carried forward into the following fiscal year.

43.5. (DJJ: Report on Children Detained Before Adjudication)
The South Carolina Department of Juvenile Justice shall compile data for one year following the
effective date of an Act of 1990 passed pursuant to Senate Bill 1485, and that data must reflect
the total number of children detained before adjudication, the reasons for those detentions, the
average length of those detentions, the percentage of children needing treatment services, and the
types of treatment services needed including, but not limited to, the number of children needing
mental health services and the number of children needing alcohol and drug abuse treatment.
This data must be reported on a quarterly basis to the Joint Legislative Committee on Children.

43.6. (DJJ: Revenues Generated) All revenues generated from
USDA federal grants, the Education Finance Act (EFA), the Detention Center, and Medicaid
federal funding may be retained, carried forward into current fiscal year, and expended by the
Department of Juvenile Justice, in accordance with applicable regulations, for the costs
associated with these programs.

43.7. (DJJ: Instructional Salaries) The certified instructional
personnel of the Department of Juvenile Justice shall receive a percentage increase in their
annual salary for the current fiscal year equal to the percentage allocated to the instructional
personnel throughout the State.

43.8. (DJJ: Juvenile Justice Parole Board Compensation) The
Department is authorized to pay the Juvenile Justice Parole Board member up to $200 per day
for services rendered to the agency in the performance of their official duties. The total amount
of agency funds which can be utilized in this manner cannot exceed $48,000 per year.

43.9. (DJJ: Electronic Monitoring Program) Of the funds
appropriated to the Department of Juvenile Justice for community corrections, other operating
expenses, the Department may expend up to $666,667 for the creation of community electronic
monitoring of juvenile offenders under the jurisdiction of the Department. In addition, before
September 1, 1996, the Department shall develop and submit a plan to the Senate Corrections
and Penology Committee and the House Judiciary Committee identifying additional offender
populations to be placed on electronic monitoring and any necessary statutory revisions or
additional funding required in order to fully implement this plan. Offenders placed on electronic
monitoring must be selected pursuant to criteria developed by the Department, and no offenders
may be placed on electronic monitoring unless the offender is in a population that is within the
purview of the Department's electronic monitoring authority.

43.10. DELETED

43.11. DELETED

P12 - SECTION 44 - FORESTRY COMMISSION

44.1. (FC: Surplus Property Exemption) The South Carolina
Forestry Commission may retain and apply all receipts, less the cost of disposition incurred by
the Division of Operations - Office of General Services, from the sale of surplus forest
firefighting equipment toward the purchase of forest firefighting equipment.

44.2. (FC: Ladies Island Fire Tower/Pickens Area Office) The
South Carolina Forestry Commission is authorized to sell 1.02 acres of real property with
improvements, known as Ladies Island Fire Tower site located in Beaufort County and to use the
receipts from the sale for construction of the Pickens Area Office and in the Commission's
Capital Improvements Program.

44.3. (FC: Grant Funds Carry Forward) The S.C. Forestry
Commission is authorized to use unexpended federal grant funds in the current year to pay for
expenditures incurred in the prior year.

44.4. DELETED

44.5. (FC: Forestry Warden Technician Training Program) Of
the funds appropriated herein, $175,000 shall be used to provide personal service funds for
forest fire wardens who enroll in the Forestry Warden Technician Program. Forest wardens will
be awarded a ten percent increase upon enrollment in the Forestry Warden Technician Training
Program. An additional ten percent increase will be awarded upon satisfactory completion of the
Forest Warden Technician Training Program.

44.6 DELETED

P16 - SECTION 45 - AGRICULTURE, DEPARTMENT OF

45.1. (AGRI: Market Bulletin) The Market Bulletin shall be
mailed only to those persons who request it in writing and a record of each request shall be
maintained by the Department. The Department shall biennially purge the subscription list
through use of a coupon printed in the Bulletin.

45.2. (AGRI: Fruit/Vegetable Inspectors Subsistence) A daily
subsistence allowance of up to $30.00 may be allowed for temporarily employed fruits and
vegetables inspectors from funds generated by fruits and vegetables inspection fees and budgeted
under Other funds in Program IV Marketing Services, E. Inspection Services, in lieu of
reimbursements for meals and lodging expense.

45.3. (AGRI: Commodity Boards Expenditures) Expenditures
made for the various Commodity Boards (as budgeted under Other funds in Program IV.C.
Marketing Services: Commodity Boards) are exempt from regulations under the Procurement
Act of 1981.

45.4. (AGRI: Mobile Lab Fee) The Commissioner of
Agriculture may set a nominal fee, not to exceed ten dollars, per analysis performed by the
Department's mobile laboratory. These fees may be retained and expended by the Department of
Agriculture to offset other operating expenses incurred by the mobile laboratory.

P20 - SECTION 46 - CLEMSON UNIVERSITY - PSA

46.1. (CU-PSA: Revenue Credited to General Fund) All
revenues derived from the Regulatory and Public Service Division covered in this section must
be remitted to the credit of the General Fund.

46.2. (CU-PSA: Employer Contributions Carry Forward) That
amount accrued and expended for employer contributions associated with accrued salaries and
wages but not remitted by June 30, of the prior fiscal year, may be carried forward to the current
fiscal year.

46.3. (CU-PSA: Pesticide Revenue) The first $140,000 in
revenue from pesticide registration fees must be retained by Regulatory and Public Service
Programs to apply to expenses of centralizing its personnel and relocating its laboratories from
the Poole Agricultural Center. All revenues collected from pesticide registration fees in excess
of $140,000 and up to $50,000 of revenues collected from Structural Pest Control Businesses for
Business licensing must be retained by Regulatory and Public Service Programs to carry out
provisions of the S.C. Pesticide Control Act as amended and pursuant to regulations related to
this Act.

46.4. (CU-PSA: Phytosanitary Certificates) Revenues collected
from the issuance of phytosanitary certificates shall be retained by the Division of Regulatory
and Public Service for the purpose of carrying out phytosanitary inspections.

46.5. (CU-PSA: Witness Fee) The Public Service Activities of
Clemson University are hereby authorized to charge a witness fee of $100.00 per hour up to
$400.00 per day for each employee testifying as an expert witness in civil matters which do not
involve the State as a party in interest. This fee shall be charged in addition to any court
prescribed payment due as compensation or reimbursement for judicial appearances and
deposited into a designated revenue account.

P24 - SECTION 47 - NATURAL RESOURCES,

DEPARTMENT OF

47.1. (DNR: County Funds) Funds belonging to each of the
counties of the State, now on hand or hereafter accruing to the counties, shall be expended on
approval of a majority of the respective county delegation, including the resident senator or
senators, if any. An annual accounting for all such funds and expenditures shall be furnished by
the Department to each member of each county delegation; it being the intent of the General
Assembly that the appropriations made in this section are conditioned upon compliance with this
requirement. In addition to the annual accounting required above, the Department shall make a
proposal for expenditures of such funds in the succeeding fiscal year in each county to the
members of the respective county legislative delegation, including the resident senator or
senators, if any; and upon approval thereby shall proceed with the use of such funds in
compliance with the finalized and approved plan as approved by each legislative delegation. If
no plan is approved, the expenditure of such funds is to be administered as determined by the
various legislative delegations.

47.2. (DNR: County Game Funds/Equipment Purchase) Any
equipment purchased by the Department from county game funds on approval of a majority of a
county delegation, including the resident senator or senators, if any, shall remain in that county
upon the request of a majority of the respective county delegation, including the resident senator
or senators, if any, and if sold by the Department, the proceeds of such sale shall be credited to
such county game fund. Expenditures from the County Game Fund and the Water Recreation
Resource Fund which have the approval of the county delegation shall be exempt from the
provisions of Act 651 of 1978, as amended.

47.3. (DNR: Armed Forces Fishing/Hunting License) Any
member of the armed forces of the United States who is a resident of South Carolina stationed
outside of the state, shall upon presentation of his official furlough or leave papers, be allowed to
fish or hunt without purchasing a fishing or hunting license.

47.4. (DNR: Fisheries) Notwithstanding the provisions of
Section 50-9-460, one-half of all proceeds from the sales under 50-9-460 shall be allocated to the
Department for the propagation and conservation of fisheries resources.

47.5. (DNR: Publications Revenue) For the current fiscal year
all revenue generated from the sale of the 'South Carolina Wildlife' magazine, its by-products
and other publications, shall be retained by the Department and used to support the production of
same in order to allow the magazine to become self-sustaining.

47.6. (DNR: Casual Sales Tax Collection) The Department of
Natural Resources shall continue to collect the casual sales tax as contained in the contractual
agreement between the Department of Revenue and Taxation and the Department of Natural
Resources and the State Treasurer is authorized to reimburse the Department on a quarterly basis
for the actual cost of collecting the casual sales tax and such reimbursement shall be paid from
revenues generated by the casual sales tax.

47.7. (DNR: Temporary Transfer of Conservation Officers)
Without expending additional personal service funds, conservation officers may be temporarily
transferred for a period not to exceed six months, to counties requiring additional law
enforcement manpower. When a conservation officer is transferred under the authority of this
provision, any county game funds which are expended for the acquisition of supplies and
equipment must be expended from the game fund of the county to which the officer is
transferred.

47.8. (DNR: General Assistance County Appropriation) The
appropriations in this section for "Aid To Conservation Districts" shall be used by
the Soil and Water Conservation Districts for general assistance to the district's program. No
district shall receive any funds under this provision unless the county or counties wherein the
district is located shall have appropriated no less than three hundred dollars to the district from
county funds for the same purposes.

47.9. (DNR: Proportionate Funding) Each of South Carolina's
46 Soil and Water Conservation Districts shall receive a proportionate share of funding set aside
for Aid to Conservation Districts up to $8,000 per district. Available funding above $8,000 for
each district will be apportioned by the Department of Natural Resources based upon local needs
and priorities as determined by the Board.

47.10. (DNR: Carry Forward - Contract for
Goods & Services) If any funds accumulated by the Department of Natural Resources
Geology Program, under contract for the provision of goods and services not covered by the
Department's appropriated funds, are not expended during the preceding fiscal years, such funds
may be carried forward and expended for the costs associated with the provision of such goods
and services.

47.11. (DNR: Revenue Carry Forward) The
Department may collect, expend and carry forward revenues derived from the sale of goods and
services in order to support aerial photography, map services, climatology data and geological
services. The Department shall annually report to the Senate Finance and Ways and Means
Committees the amount of revenue generated from the sale of these goods and services.

47.12. (DNR: Clothing Allowance) The
Department of Natural Resources is hereby authorized to provide Natural Resource Enforcement
Officers on special assignment with an annual clothing allowance (on a prorata basis) not to
exceed $400 per officer for required clothing used in the line of duty.

47.13. DELETED

* 47.14. (DNR: Field Trial Permits)
Pursuant to R.123-96 (Field Trial Regulations), field trial permit requests are to be accompanied
by a payment of twenty dollars per trial.

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

47.15. (DNR: Pagers Service Fee) Upon the
request of a county delegation, the Department of Natural Resources shall pay the minimum
monthly service fee for pagers issued to the Department of Natural Resources law enforcement
officers from the funds expended by the Department of Natural Resources for operating
expenses.

47.16. (DNR: Richland County Water
Recreational Resources Fund) Of the funds allocated to the Water Recreational Resources Fund
for Richland County and upon the approval of the county delegation, $60,000 from the county's
Water Recreational Resources Fund shall be used for renovation of the Lake Murray Tourism
Visitors Center.

47.17. (DNR: Commissioned Officers'
Physicals) The Department is authorized to pay for the cost of physical examinations for
department personnel who are required to receive such physical examinations prior to receiving
a law enforcement commission.

P26 - SECTION 48 - SEA GRANT CONSORTIUM

48.1. (SGC: Publications Revenue) Funds generated by the sale
of pamphlets, books, and other printed materials, the production of which has been supported by
non-state funding, may be deposited in a special account by the Consortium and utilized as
Other Funds for the purchase of additional pamphlets, books, and other printed materials for
distribution to the public.

P28 - SECTION 49 - PARKS, RECREATION AND TOURISM,

DEPARTMENT OF

49.1. (PRT: Canadian Day) The Department when expending
the $85,000 appropriation herein contained for a Canadian Promotion shall designate one day of
such promotion as "Canadian Day" and notwithstanding any other provision of law,
all Canadians shall be allowed admittance to state parks and use of park camping facilities on
Canadian Day free of charge.

49.2. (PRT: Boyleston House Gift/Souvenir Shop Revenue)
Any monies derived from the Gift/Souvenir Shop at the Boyleston House must be used for the
continuing operation of same.

49.3. (PRT: Publications Revenue) The Department is
authorized to charge a fee for the cost of vacation guides, research reports, educational
conferences, technical planning assistance, technical drawings, and mailing lists. The fee shall
offset the actual cost of producing or providing such items and revenue in an amount necessary
to offset actual cost shall be retained in a restricted account. Any revenue generated above the
actual cost shall be remitted to the General Fund of the State.

49.4. (PRT: Tourism Funds Sharing Grants) Notwithstanding
any other provision of law or appropriation herein contained, the Horry-Georgetown Tourism
Commission is not eligible to receive any tourism funds-sharing grants.

49.5. (PRT: Scholarship Program) The Department of Parks,
Recreation and Tourism is hereby authorized to establish a scholarship program with Clemson
University, South Carolina State University, Sumter Technical College, Trident Technical
College, Horry-Georgetown Technical College, Technical College of the Low Country, and
other South Carolina institutions of higher education for the purpose of assisting students
majoring in park-related fields such as park management, interpretation or conservation relative
to potential future employment with the State Parks Division.

49.6. DELETED

49.7. DELETED

* 49.8. (PRT: State Park Funding) No funds
appropriated or authorized in Part IA shall be utilized for advertising by the S.C. Department of
Parks, Recreation and Tourism in the event that a state park is closed or management
responsibility is transferred to another entity without the express approval of a majority of the
resident Senate and a majority of the resident House members of the county delegation in which
a state park is located. The department shall develop an implementation plan for each park and,
if an effective reduction in the level of services is planned, the department shall review the
changes with the county delegation in which the state park is located.

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

* 49.9. (PRT: PRT Report Submission) In the event that
the department prepares an inventory or analysis of the state parks as part of the Programs and
Services Division, it shall submit a copy of the report to each member of the General
Assembly.

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

49.10. DELETED

P32 - SECTION 50 - COMMERCE, DEPARTMENT OF

50.1. (CMRC: Development - Publications Revenue) The
proceeds from the sale of publications may be retained in the agency's printing, binding, and
advertising account to offset increased costs.

50.2. (CMRC: Development - Enterprise Development Inc.
Contract) The Division of State Development may contract with Enterprise Development, Inc.
of South Carolina to provide and perform the following functions:

These contractual services may be funded through the transfer of up to $550,000
of budgetary monies from the Division of State Development. The corporation, as a condition of
receiving the contract, must provide in its charter that the Chairmen of the Senate Finance
Committee and House Ways and Means Committee, or their designees, are ex-officio members
of the corporate board.

50.3. (CMRC: Economic Dev. Coordinating Council - SCIP
Carry Forward) From the amount set aside in 12-27-1270, the Council is authorized to use up to
$60,000 to continue to contract with the Division of State Development for the development of
the South Carolina Infrastructure-Economic Development Planning Project (SCIP) utilizing
Geographic Information Systems, GIS. Any balance on June 30 of the prior fiscal year may be
carried forward and expended for the same purposes in the current fiscal year.

50.4. (CMRC: Savannah Valley - Carry Forward) The Division
of Savannah Valley Development is hereby authorized to carry forward unexpended funds,
regardless of their origin, for the authorized purposes of the Development as specified in its
legislation.

50.5. (CMRC: Aeronautics - Civil Air Patrol) The funds
appropriated in this section under program VII.T "Civil Air Patrol" shall be
expended by the Civil Air Patrol so as to discharge the State's obligations in conjunction with the
Civil Air Patrol as outlined in the SARDA Plan, the S. C. Operational Radiological Emergency
Response Plan, and assist County and local authorities and other State agencies insofar as
permitted by the regulations governing the Civil Air Patrol. All expenditures for equipment and
services shall be in accordance with State fiscal policies.

50.6. (CMRC: Aeronautics - Reimbursement for Services Carry
Forward) The Division of Aeronautics may retain and expend reimbursements derived from
charges to other government agencies for service and supplies for operating purposes and that a
reserve not to exceed $300,000 may be carried forward to the current fiscal year for the
replacement of time limit aircraft components.

50.7. (CMRC: Aeronautics - Air Force Office Space Rental)
Revenue received for rental of office space to the U. S. Air Force may be retained and
expended to cover the cost of building operations.

50.8. (CMRC: Aeronautics - Cost of Utilities) The Division of
Aeronautics shall not pay for all or any portion of the cost of utilities at any airport or facility
except for buildings occupied by the Division of Aeronautics.

50.9. (CMRC: Aeronautics - Funding Sequence) All General
Aviation Airports will receive funding prior to the four air carrier airports (i.e. Columbia,
Charleston, Greenville-Spartanburg, Myrtle Beach Jetport) as these qualify for special funding
under the DOT/FAA appropriations based on enplanements in South Carolina. This policy may
be waived to provide matching State funds for critical FAA safety or capacity projects at air
carrier airports.

50.10. (CMRC: Aeronautics - Hangar/Parking
Facilities) The Division of Aeronautics will provide hangar/parking facilities for government
owned and/or operated aircraft on a first come basis. The funds collected are to be deposited to
the General Fund. The Hangar Fee Schedule shall be as follows:

Permanent parking/tie down space will be provided at the rate of $20.00 per month for single
engine aircraft, or $30.00 per month for twin engine aircraft. Personnel from the agencies
owning and/or operating aircraft will be responsible for ground movement of their aircraft.

50.11. (CMRC: Aeronautics - Airport
Planning/Development Studies Carry Forward) Any unexpended balance on June 30, of the
prior fiscal year, of appropriations to the Division for airport planning and development studies
may be carried forward into the current fiscal year, and expended for the same purposes.

50.12. (CMRC: Aeronautics - Airport
Development) Any line item appropriation for airports shall be disbursed for eligible airport
development items as approved by the Division.

50.13. (CMRC: Aeronautics - Clothing
Allowance) The Division of Aeronautics is hereby authorized to provide pilots with an annual
clothing allowance (on a pro rata basis) not to exceed $400 per pilot for required clothing used in
the performance of their primary duty.

50.14. (CMRC: Contributions Carry Forward)
The Department of Commerce is authorized to carry forward unexpended contributions received
from member agencies of the Economic Development Coordinating Council to be used for
operating expenses and to offset contributions in the current fiscal year.

50.15. (CMRC: Grant Funds Carry Forward)
Any unexpended balance on June 30, of the prior fiscal year, for Matching National Grant
Funds, may be carried forward to the current fiscal year and used for matching committed and/or
unanticipated grant funds.

50.16. (CMRC: Supplemental Carry Forward)
Any unexpended funds from FY 94 Supplemental Appropriation Act (#528), Section 3(11) and
Section 3(42) for airport improvements may be carried forward from FY 95 into FY 96 and
expended for the same purpose.

50.17. (CMRC: Carry Forward Sale of Aircraft
Proceeds) The Department of Commerce may carry forward proceeds from the sale of aircraft to
be used for replacement aircraft.

R04 - SECTION 54 - PUBLIC SERVICE COMMISSION

54.1. (PSC: Assessment Certification) The Public Service
Commission shall certify to the Department of Revenue and Taxation the amounts to be assessed
to cover appropriations in this section as follows: (1) the amount applicable to the assessment on
public utility, telephone utility, radio common carrier and electric utility companies as provided
for by Section 58-3-100, Code of Laws of 1976, (2) the amount to be assessed against gas utility
companies as provided for in Section 58-5-940, Code of Laws of 1976, (3) the amount to be
assessed against electric light and power companies as provided for in Sections 58-3-100 and
58-27-50, Code of Laws of 1976, and (4) the amount to be covered by revenue from motor
transport fees as provided for by Section 58-23-630, and other fees as set forth in Section
58-3-100, Code of Laws of 1976. The amount to be assessed against railroad companies shall
consist of all expenses related to the operations of the Railway subprogram of the Agency's
Transportation Division, to include the related distribution of salary increments and employer
contributions not reflected in the related subprogram of this Act as set forth in Section 58-3-100,
Code of Laws of 1976.

54.2. (PSC: Indirect Cost) The assessment certification
prepared for the Department of Revenue and Taxation shall include an allocation of indirect cost
as approved by the Budget and Control Board representing the Public Service Commission's
proportionate share of the cost of central State government.

54.3. (PSC: Motor Transport Fee Refund) The Motor Transport
Division of the Public Service Commission is hereby authorized to make refunds of fees which
were erroneously collected.

54.4. (PSC: Certification Assessment for Commission
Expenses) The Public Service Commission shall make such certification as required under
Section 58-3-100, Code of Laws of 1976.

54.5. (PSC: Attorneys Appointment) The three attorneys
provided for in this section under Program I "Administration" shall be appointed by
the Commission with the approval of the Attorney General and be assigned to the Commission.

54.6. (PSC: Maximum Salary Limit) The salaries of the
chairman and the commissioners as provided in this section shall not be construed as limiting the
maximum salary which may be paid to other employees of the Public Service Commission.

54.7. DELETED

54.8. DELETED

R08 - SECTION 55 - WORKERS' COMPENSATION

COMMISSION

55.1. (WCC: Physicians & Surgeons Schedule of Fees
Revenue) All revenue earned from the sale of the Commission's publication Schedule of Fees
for Physicians and Surgeons shall be retained by the agency to be used for the printing and
distribution of subsequent revised editions of the schedule.

55.2. (WCC: Educational Seminar Revenue) Beginning in FY
94-95, all revenue earned from educational seminars shall be retained by the agency to be used
for the printing of educational materials and other expenses related to conducting the seminar.

55.3. DELETED

55.4. DELETED

R12 - SECTION 56 - ACCIDENT FUND, STATE

56.1. (SAF: Medical Claims Penalty Clause) Medical claims
against the State Accident Fund shall not be subject to the 30 day penalty clause as set forth in
Section 17 of Act 148 of 1981 as amended by Part II, Section 9, of Act 466 of 1982, until such
claims are approved by the Workers' Compensation Commission and received by the Fund.

56.2. (SAF: Volunteer Fire/Rescue Squads Coverage)
Notwithstanding any other provision of law, voluntary firemen of organized volunteer fire units
and members of organized volunteer rescue squads are covered under workers' compensation by
the county governing body unless the governing body of the county opts out of the coverage.

56.3. (SAF: Educational Seminar Revenue) The State Accident
Fund is authorized to set and collect fees for educational seminars. All revenue earned from
educational seminars shall be retained by the agency and used for supplies, materials, and other
expenses relating to the seminars.

R20 - SECTION 59 - INSURANCE, DEPARTMENT OF

59.1. (INS: Rate Division Auto Insurers Assessment) The costs
of operating the Rate Division shall be borne by insurers of automobile insurance. Not later than
sixty days after the effective date of this Act, the Chief Insurance Commissioner shall assess
each automobile insurer for its just proportion of the amount appropriated by the General
Assembly herein for the operation of the Rate Division, such amount to also include
appropriated salary adjustments and employer contributions allocable to the Rate Division. Such
assessments shall be in the proportion that each insurer's preceding calendar year direct written
premium for automobile insurance in this State bears to the total direct written premium for all
insurers of automobile insurance in this State during such preceding calendar year. For purposes
of this section, direct written premium shall be as reflected in the latest annual statements of
automobile insurers in this State filed with the Commissioner. Funds appropriated by the
General Assembly for the operation of the Rate Division shall be advanced by the State until the
assessments levied herein are collected and deposited in the General Fund of the State.

59.2. (INS: Examiners Travel/Subsistence Reimbursement)
Notwithstanding the limitations in this Act as to amounts payable or reimbursable for lodging,
meals, and travel, the Department of Insurance is authorized to reimburse Department examiners
in accordance with guidelines established by the National Association of Insurance
Commissioners only when the State is reimbursed by an insurance company for the travel and
subsistence expenses of Insurance Department examiners pursuant to S. C. Code Section
38-13-10, 1976.

59.3. (INS: Reimbursement Carry Forward) Reimbursements
received for Data Processing Services, Revenue, Miscellaneous Revenue and Sale of Listings
and Labels shall be retained for use by the Department. These funds may be carried forward in
the current fiscal year to be expended for the same purposes.

R23 - SECTION 60 - FINANCIAL INSTITUTIONS,

STATE BOARD OF

60.1. (FI: Supervisory Fees) The Board of Financial Institutions
shall fix supervisory fees of banks, savings and loan associations and credit unions on a scale
which, together with fees collected by the Consumer Finance Division will fully cover the total
funds expended under this section.

R28 - SECTION 61 - CONSUMER AFFAIRS, DEPARTMENT OF

61.1. (CA: Consumer Protection Code Violations Revenue)
Funds, paid to the Department in settlement of cases involving violations of the South Carolina
Consumer Protection Code and other statutes enforced by the Department be retained and
expended within the agency's budget to help offset the costs of investigating, prosecuting, and
the administrative costs associated with these violations, may be carried forward and expended
for the same purposes in the current fiscal year.

61.2. (CA: Student Athlete/Agents Registration) Funds received
by the Department of Consumer Affairs pursuant to registrations under Chapter 102 of Title 59
of the 1976 Code may be retained by the Department for its enforcement duties relating to
athlete agents and student athletes under that chapter.

61.3. (CA: Expert Witness/Assistance Carry Forward)
Unexpended encumbered appropriated funds for the Consumer Advocacy expert
witness/assistance program (under Section 37-6-603) may be carried forward into the next fiscal
year to meet contractual obligations existing at June 30, and not paid by July 31.

R36 - SECTION 62 - LABOR, LICENSING AND REGULATIONS,

DEPARTMENT OF

62.1. (LLR: Fire Marshal - Authorization to Charge Fees for
Training) The Fire Academy of the State Fire Marshal Division may charge participants a fee to
cover the cost of education, training programs and operations. The revenue generated may be
applied to the cost of operations, and any unexpended balance may be carried forward to the
current fiscal year and utilized for the same purposes.

62.2. (LLR: Real Estate Research & Education Program
Funds) Any funds on deposit with the State Treasurer for research and education programs of
the Real Estate Commission shall be remitted to the General Fund of the State.

62.3. (LLR: Real Estate - Research & Education Projects)
All funds appropriated, in this section, for Research and Education projects shall be funded
wholly, out of the Real Estate Commission authorized allocation of five dollars from each annual
renewal fee. All funds appropriated in this section, for Research and Educational projects shall
be expended for the purpose designated.

62.5. (LLR: Real Estate - Special Account) Revenue in the
Real Estate Appraisal Registry account shall not be subject to fiscal year limitations and shall
carry forward each fiscal year for the designated purpose.

62.6. (LLR: S.C. Building Code Council) All funds received by
the Building Codes & Regulatory Services for the S.C. Building Code Council which
exceed the total amount of expenditures for operating expenses of the Council shall be deposited
in the General Fund of the State.

62.7. (LLR: POLA - 110%, Other Funds) The Professional and
Occupational Licensing Agencies in Program "IV. Professional and Occupational
Licensing Offices", within the Department of Labor, Licensing, and Regulation, must
generate revenue at least equal to 110% of their expenditures with 10% deposited to the General
Fund. The Contractor's Licensing Board must remit all revenues above their expenditures to the
General Fund, which includes the 10%.

62.8. (LLR: Fallen Firefighters Memorial) The Department of
Labor, Licensing and Regulations - Division of the State Fire Marshal is authorized to erect a
memorial on the South Carolina Fire Academy grounds in honor of the South Carolina
Firefighters who have died in the act of duty. In order to carry out the purpose of this section,
the Department's State Fire and Safety Division is authorized to establish a special account and
accept gifts or grants of services, properties or monies from individuals or public and private
organizations. The Department shall cooperate with the S.C. State Fire Chiefs Association as to
design, selection and construction of the monument to be erected and shall be authorized to use
such funds as necessary. All excess monies collected are to be placed in a fund for upkeep and
maintenance. Any later contributions are to be used for upkeep and maintenance.

R44 - SECTION 63 - REVENUE, DEPARTMENT OF

63.1. (DOR: Alcoholic Liquor Revenues) Appropriations in this
Act to cover the cost of the administration and enforcement of alcoholic liquor laws by the
Department of Revenue and Taxation and appropriations in this Act for expenses of the State
Law Enforcement Division - ABC Enforcement shall be deducted from the total revenues from
alcoholic liquors before distributions of such revenues to the counties and municipalities of the
State and such amounts withheld shall be remitted to the General Fund of the State.

63.2. (DOR: Cost Recovery Fee) The Department of Revenue
and Taxation may collect fees to recover the costs of the production, purchase, handling and
mailing of documents, publications, records and data sets, and such funds shall be retained by
the Agency.

63.3. (DOR: Subpoenaed Employee Expense Reimbursement)
If any employee of the Department of Revenue and Taxation is subpoenaed to testify during
litigation not involving the Department of Revenue and Taxation, the party subpoenaing the
employee(s) to testify shall reimburse the State for expenses incurred by the employee(s)
requested to testify. Expenses shall include but are not limited to the cost of materials and the
average daily salary of the employee or employees.

63.4. (DOR: Bingo and Video Poker Revenue) As to revenue
derived from the provisions of Chapter 21, Title 12, which is collected from bingo, the
Department of Revenue and Taxation may withhold from the General Fund portion of this
revenue the actual costs of Bingo audit activity and of criminal record checks pursuant to the
evaluation of applications for bingo licenses. As to revenue derived in accordance with S.C.
Code Ann. Section 12-21-2720(3), the Department of Revenue may withhold the actual costs,
not to exceed $250,000 per fiscal year, of video game machine audit and regulatory enforcement
activity by agents of the Department of Revenue. Any winnings resulting from these activities
must be deposited to the General Fund. The Department shall strictly enforce Regulation
117-190 in order to prevent the licensing and operation of large scale video gaming operations.
The Department shall coordinate with the State Law Enforcement Division in the regulation of
video game operations in establishments which are authorized under both Sections 12-21-2720
through 12-21-2808 and Title 61 of the South Carolina Code. The Department annually shall
make a report to the Governor and General Assembly outlining the collection activities as a
result of this proviso.

63.5. (DOR: Court Order Funds Carry Forward) Funds awarded
to the Department of Revenue and Taxation by court order shall be retained in a special account
and shall be carried forward from year to year, and expended as needed to accomplish the
purposes and conditions of said order if specified, and if not specified, as may be directed by the
Director of the Department of Revenue and Taxation.

63.6. DELETED

63.7. (DOR: Assessor Training) Pursuant to the enforcement of
South Carolina Code Section 12-37-110, the Property Division of the Department of Revenue
and Taxation may charge participants a fee to cover the cost of pertinent education and training
programs. The revenue generated may be applied to the cost of the related operation, and any
unexpended balance may be carried forward to subsequent fiscal periods and utilized for the
same purpose.

63.8. (DOR: Professional Designation or License Cost)
Whenever a professional designation or license is a legislatively mandated requirement for
employment by the Department of Revenue and Taxation, the Department shall be responsible
for the annual cost to maintain that required designation or license and provide for examination
cost associated with such designation or license if not outside his/her normal duties.

63.9. (DOR: Tax Education Program) Pursuant to taxpayer
educational activities stipulated and authorized by SC Code Section 12-54-740, the Department
of Revenue may charge participants a fee to recover the related direct costs. The revenue
generated from this may be applied to said cost, and any unexpended balance may be carried
forward to subsequent fiscal periods and used for the stated purpose.

63.10. DELETED

63.11. (DOR: Certified and Registered Postage
Reimbursement) As to any notice of assessment, adjustment or penalty issued under the
provisions of S.C. Code Ann. Title 12 or Title 61, the Department of Revenue is authorized to
add $1.50 from time to time to any notice of assessment, adjustment or penalty which may be
required to be posted by registered or certified mail, and to treat the collection of this additional
$1.50, on an estimated or imputed basis, as a reimbursement of the Department's expenditures
for postage.

63.12. (DOR: Credit Card Payment of
Delinquent Taxes) The Department shall have the authority to accept, on terms and conditions
to be established by the Department in regulations and rulings, payment of delinquent taxes by
credit cards. Such authority shall include a determination not to accept such payments or to
permit payment only for certain classes of delinquent taxes to be specified by the Department.
Notwithstanding any other provision of law, the State Treasurer may enter into contracts on
behalf of the Department whereby the Department may accept credit card payment of delinquent
taxes. The Department may withhold the actual cost of processing credit card payments from
deposits of the tax types corresponding to the related delinquent payments, and may treat these
withholdings as reimbursements of the associated expenditures.

R60 - SECTION 65 - EMPLOYMENT SECURITY COMMISSION

65.1. (ESC: Salary Level) The salaries of the Chairman, the
Commissioners, and the Agency Director of the Employment Security Commission shall be no
less than that agreed to by the United States Department of Labor.

65.2. (ESC: Dept. of Revenue & Taxation Access to
Report) The Employment Security Commission shall allow the Department of Revenue and
Taxation access to the Employer's Quarterly Report and any by-product of such report.

65.3. (ESC: SCOICC User Fee Carry Forward) All user fees
collected by the S.C. Occupational Information Coordinating Committee through the
Employment Security Commission may be retained by the SCOICC to be used for the exclusive
purpose of operating the S.C. Occupational Information System. All user fees not expended in
the prior fiscal year may be carried forward for use in the current fiscal year.

65.4. (ESC: JTPA Prior Year Payments) The Employment
Security Commission shall be allowed to pay Job Training Partnership Act prior year obligations
with current year funds.

65.5. DELETED

65.6 (ESC: Unemployment Compensation Contribution Rates)
(A) Notwithstanding any provision contained in Section 41-31-80 of the 1976 Code, with
respect to the computation of the statewide reserve ratio for employer contributions to the State
Unemployment Compensation Fund, for the period January 1, 1998 through December 31, 1998,
the following contribution rates apply:

If the resultant percentage of the employer's reserve balance
divided by the annual payroll equals or exceeds 9%, then the contribution rate is .54%;

If the resultant percentage of the employer's reserve balance
divided by the annual payroll equals 8% but is less than 9%, then the contribution rate is .89%;

If the resultant percentage of the employer's reserve balance
divided by the annual payroll equals 7% but is less than 8%, then the contribution rate is 1.24%;

If the resultant percentage of the employer's reserve balance
divided by the annual payroll equals 6% but is less than 7%, then the contribution rate is 1.59%;

If the resultant percentage of the employer's reserve balance
divided by the annual payroll equals 5% but is less than 6%, then the contribution rate is 1.94%;

If the resultant percentage of the employer's reserve balance
divided by the annual payroll equals 4% but is less than 5%, then the contribution rate is 2.29%;

If the resultant percentage of the employer's reserve balance
divided by the annual payroll is less than 4%, then the contribution rate is 2.64%.

(B) All other provisions of Chapters 27 through 42, Title 41, of
the 1976 Code are applicable for the period January 1, 1998 through December 31, 1998.

X12 - SECTION 68A - AID TO SUBDIVISIONS

COMPTROLLER GENERAL

68A.1. (AS-CG: Salary Supplements) Of the amount
appropriated in this section for Clerks of Court, Probate Judges, and County Sheriffs, $4,725
shall be distributed by the Comptroller General to each County Treasurer, which shall be used as
a $1,575 salary supplement for each Clerk of Court, Probate Judge and County Sheriff. The
amounts appropriated in this section for Registers of Mesne Conveyances shall be distributed by
the Comptroller General to the appropriate County Treasurer, which shall be used as a $1,575
salary supplement for Registers of Mesne Conveyances. The State shall pay $15,236 on the
salary of each County Auditor and County Treasurer in addition to any amounts presently being
provided by the county for these positions. It is the intent of the General Assembly that the
amount appropriated by the county for these positions shall not be reduced as a result of the
appropriation and that such appropriation shall not disqualify each County Auditor and each
County Treasurer for salary increases that they might otherwise receive from county funds in the
future. These salaries shall be paid in accordance with the schedule and method of payment
established for state employees.

X20 - SECTION 68B - AID TO SUBDIVISIONS

STATE TREASURER

68B.1. DELETED

X50 - SECTION 69 - TRANSPORTATION, DEPARTMENT OF

69.1. (DOT: Expenditure Authority Limitation) The Department
of Transportation is hereby authorized to expend all cash balances brought forward from the
previous year and all income including all Federal Funds, unexpended General Funds and
proceeds from bond sales accruing to the Department of Transportation, but in no case shall the
expenditures of the Department of Transportation exceed the amount of cash balances brought
forward from the preceding year plus the amount of all income including Federal Funds, General
Funds and proceeds from bond sales.

69.2. (DOT: Special Fund Authorization) The Department of
Transportation with the approval of the State Treasurer, is hereby authorized to set up with the
State Treasurer such special funds out of the Department of Transportation funds as may be
deemed advisable for proper accounting purposes.

69.3. (DOT: Secure Bonds & Insurance) The Department
of Transportation is hereby authorized to secure bonds and insurance covering such activities of
the Department as may be deemed proper and advisable, due consideration being given to the
security offered and the service of claims.

69.4. (DOT: Statewide Cost Allocation Plan) The Department
of Transportation shall pay into the General Fund of the State the sum of $4,879,223 as its
proportionate share of the cost of Administration of central service agencies as follows:

The sum of $362,093 is also transferred for the support of the Highway Patrol and Motor Vehicle
Licensing Division which was transferred during restructuring. If fees generated by Title 56 for
motor vehicle licenses exceed the BEA Fiscal Year 1996-97 forecast, the amount transferred
may be reduced proportionately.

Highway Fund Transfer ............... $ 362,093

Total Remittance ............... $5,241,316

69.5. (DOT: Benefits) Employees of the Department of
Transportation shall receive equal compensation increases, health insurance benefits and
employee bonuses provided in this Act for employees of the State generally. The amount will be
funded from Department of Transportation funding sources.

69.6. (DOT: Document Fees) The Department of
Transportation is hereby authorized to establish an appropriate schedule of fees to be charged for
copies of records, lists, bidder's proposals, plans, maps, etc. based upon approximate actual costs
and handling costs of producing such copies, lists, bidder's proposals, plans, maps, etc.

69.7. (DOT: Commissions Per Diem, Subsistence, Mileage)
Members of the Department of Transportation Commission shall receive such per diem,
subsistence and mileage for each official meeting as is provided by law for members of boards,
commissions and committees.

69.8. (DOT: Employ Legal/Support Staff) The Department of
Transportation shall have the authority with the approval of the Attorney General to employ,
within existing authorized positions, necessary legal and support staff to represent the
Department in legal matters, including condemnation proceedings and other litigation; such
representation shall be under the jurisdiction and control of the Attorney General.

69.9. (DOT: Contract Mass Transit System) Notwithstanding
any other provision of law, the Department of Transportation is hereby authorized to directly
contract mass transit funds with any private operator of a mass transit system to provide service
to the general public; provided, that a plan of service has been established and approved by the
local general purpose government which has jurisdiction for the area to be served, and approved
by the Department, the Transportation Commission and the federal government.

69.10. (DOT: Relax Design/Construction
Standards Authority) In recognition of budgetary restraints, the Department of Transportation,
its Commission, officers and employees, are herewith granted the discretionary authority to relax
design and construction standards for the current fiscal year, with respect to highway projects in
the secondary State highway system, and the exercise of such discretionary authority to relax
design and construction standards shall not give rise to any liability on the part of the
Department, its Commission, officers and employees.

69.11. (DOT: Accounting Functions
Transferred to Comptroller General and State Treasurer) The Department of Transportation
shall transfer $471,500 to the General Fund for the purpose of servicing the accounting and
payroll functions of the Comptroller General's Office. The Department of Transportation shall
transfer $123,546 to the General Fund for servicing the functions of the State Treasurer's Office.

69.12. (DOT: Employee Bonus)
Notwithstanding any other provision of law, the Department of Transportation shall be allowed
to spend monies to provide selected employees a one-time lump sum bonus not to exceed
$1,000, based on objective guidelines established by the Budget and Control Board. This
payment is not a part of the employee's base salary and is not earnable compensation for
purposes of employee and employer contributions to respective retirement systems.

69.13. DELETED

69.14. (DOT: Restructuring-Maintenance
Activities) The Department of Transportation shall begin restructuring operations so as to
reduce maintenance activities performed with Department personnel and equipment. This
restructuring shall be completed no later than June 30, 1998. As part of this restructuring effort,
the Department shall endeavor to use private contractors for: bridge replacements; surface
treatment (Class A surfacing/seal coating); thermo-plastic striping; traffic signals; fencing; and
guardrails whenever possible.

69.15. DELETED

69.16. (DOT: Coordinate Transportation
Funding and Resources) The Department of Transportation shall continue to carry out and
enhance the coordination planning and demonstration process for public transportation funding
and resources established during the prior fiscal year. Progress reports shall be submitted to the
General Assembly at two intervals using the fiscal year--an interim progress report no later than
January 15, 1998, and a follow-up report of progress and plans for the upcoming year no later
than May 15, 1998. The intent of this proviso is to improve access and delivery of transportation
services, especially in rural areas. In planning and developing mechanisms for increasing
coordination of funding streams and resources at both the state and local levels, the Department
of Transportation shall work with each agency that provides funding for transportation and
assure input in the process from major local providers of transportation services to the public,
including current providers of coordinated public service.

Any agency, local government or other entity, including non-profit
organizations, using state funds or state-administered federal funds for the purpose of
transporting private citizens on a regular basis, 1) must provide input and information as
requested by the Department of Transportation in a timely manner and in a format specified by
the Department of Transportation in order to update data on transportation resources for planning
purposes and; 2) show evidence of progress toward the development of or participation in a
coordination plan. The Department of Corrections, the Department of Education, school districts
and institutions of higher education are exempt from the requirements of this section. No
transportation funds may be provided to any entity not in compliance with the requirements of
this section.

69.17. (DOT: Payroll Deduction for Uniform
Rental) The Department of Transportation, upon the written request of an employee, shall make
deduction from the employee's compensation for payments for work related uniform rental.

72.1. (GP: Judicial & Involuntary Commitment, Defense of
Indigents) It is the responsibility of all agencies, departments and institutions of state
government, to provide at no cost and as a part of the regular services of the agency, department
or institutions such services as are necessary to carry out the provisions of Chapter 52 of Title 44
(Involuntary Commitment), Article 7, Chapter 17 of Title 44 of the 1976 Code (Judicial
Commitment), Chapter 3 of Title 17 of the 1976 Code (Defense of Indigents), and Article 1 of
Chapter 3 of Title 16 of the 1976 Code (Death Penalty), as amended, upon request of the Judicial
Department and/or the appropriate court. To this end, state agencies are directed to furnish to the
Judicial Department a list of their employees who are competent to serve as court examiners.
The Judicial Department shall forward a copy of this list to the appropriate courts, and the courts
shall utilize the services of such state employees whenever feasible. State employees shall
receive no additional compensation for performing such services. For the purpose of interpreting
this section, employees of the Medical University of South Carolina and individuals serving an
internship or residency as an academic requirement or employees who are not full-time state
employees and who are not performing duties as state employees are not considered state
employees.

72.2. (GP: Case Service Billing Payments Prior Year)
Notwithstanding any other provision of law, agencies appropriated case services funds who
routinely receive prior year case service billings after the old fiscal year has been officially
closed are authorized to pay these case service obligations with current funds. This authorization
does not apply to billings on hand that have been through a timely agency payment approval
process when the old fiscal year closes.

72.3. (GP: Credit Cards for Goods & Services)
Notwithstanding any other provision of law, the State Treasurer may enter into contracts
whereby the agency or institution may accept credit cards as payment for goods or services
provided.

72.4. (GP: Warrant Requisitions, Deposits) The expenditure of
money appropriated in this Act shall be by warrant requisitions directed to the Comptroller
General. Upon receipt of the requisition, accompanied by invoices or other satisfactory evidence
of the propriety of the payment, and itemized according to standard budget classifications, the
Comptroller General shall issue his warrant on the State Treasurer to the payee designated in the
requisition. No requisitions for warrants shall be processed for any amounts less than one dollar.
Upon approval and designation by the State Budget and Control Board, state institutions may
requisition funds in favor of their own treasurer, itemized only to the extent of the purpose of the
appropriation as expressed in this Act, and may deposit such funds in the name of the institution,
in such bank or banking institutions as shall be designated by the State Treasurer, and disburse
same by check to meet the purposes of the appropriation, but strict account shall be kept of all
such expenditures according to standard budget classifications. All money shall be drawn only
when actually owing and due. The Comptroller General shall establish rules and regulations for
the uniform reimbursement, remittance and transfers of funds to the General Fund of the State
required by law.

72.5. (GP: Federal Program Expenses, Lag Time) After July 1,
of the current fiscal year, the Department of Health and Environmental Control, Department of
Mental Health, Department of Disabilities & Special Needs, Department of Social Services,
Department of Health and Human Services, Division on Aging, Division of Foster Care,
Department of Corrections, and Department of Juvenile Justice may expend if necessary, state
appropriated funds for the current fiscal year to cover fourth quarter Federal Programs expenses
incurred in the prior fiscal year necessitated by the time lag of federal reimbursement.

72.6. (GP: Federal Funds, Donations, Deposited in State
Treasury) All Federal Funds received shall be deposited in the State Treasury, if not in conflict
with Federal regulations, and withdrawn therefrom as needed, in the same manner as that
provided for the disbursement of state funds. If it shall be determined that federal funds are not
available for, or cannot be appropriately used in connection with, all or any part of any activity
or program for which state funds are specifically appropriated in this Act to match Federal funds,
the appropriated funds may not be expended and shall be returned to the General Fund, except
upon specific written approval of the Budget and Control Board. Donations or contributions
from sources other than the Federal Government, for use by any state agency, shall be deposited
in the State Treasury, but in special accounts, and shall be withdrawn from the treasury as
needed to fulfill the purposes and conditions of the said donations, or contributions, if specified,
and, if not specified, as may be directed by the proper authorities of the department. The
expenditure of funds by agencies of the State Government from sources other than General Fund
appropriations shall be subject to the same limitations and provisions of law applicable to the
expenditure of appropriated funds with respect to salaries, wages or other compensation, travel
expense, and other allowance or benefits for employees.

72.7. (GP: Fee Increases) (A) No state agency, department,
board, committee, commission, or authority, may increase an existing fee for performing any
duty, responsibility, or function unless the fee for performing the particular duty, responsibility,
or function is authorized by statutory law and set by regulation except as provided in this
paragraph.

(5) sales by state agencies of goods or tangible
products produced for or by these agencies;

(6) charges by state agencies for room and
board provided on state-owned property;

(7) application fees for recreational activities
sponsored by state agencies and conducted on a draw or lottery basis;

(8) court fees or fines levied in a judicial or
adjudicatory proceeding;

(9) the South Carolina Public Service Authority
or the South Carolina Ports Authority.

(C) This paragraph does not prohibit a state agency, department,
board, committee, or commission from increasing fees for services provided to other state
agencies, departments, boards, committees, commissions, political subdivisions, or fees for
health care and laboratory services regardless of whether the fee is set by statute.

(D) Statutory law for purposes of this paragraph does not
include regulations promulgated pursuant to the State Administrative Procedures Act.

72.8. (GP: State Institutions - Revenues & Income) The
University of South Carolina, Clemson University, the Medical University of S. C. (including
the Medical University Hospital), The Citadel, Winthrop University, S. C. State University,
Francis Marion University, University of Charleston, Lander University and the Wil Lou Gray
Opportunity School shall remit all revenues and income, collected at the respective institutions,
to the State Treasurer according to the terms of Section 1 of this Act, but all such revenues or
income so collected, except fees received as regular term tuition, matriculation, and registration,
shall be carried in a special continuing account by the State Treasurer, to the credit of the
respective institutions, and may be requisitioned by said institutions, in the manner prescribed in
Section 72.5 of this Act, and expended to fulfill the purpose for which such fees or income were
levied, but no part of such income shall be used for permanent improvements without the express
written approval of the State Budget and Control Board and the Joint Legislative Capital Bond
Review Committee; and it is further required that no such fee or income shall be charged in
excess of the amount that is necessary to supply the service, or fulfill the purpose for which such
fee or income was charged. Notwithstanding other provisions of this act, funds at State
Institutions of Higher Learning derived wholly from athletic or other student contests, from the
activities of student organizations, and from the operations of canteens and bookstores, and from
approved Private Practice plans at institutions and affiliated agencies may be retained at the
institution and expended by the respective institutions only in accord with policies established by
the institution's Board of Trustees. Such funds shall be audited annually by the State but the
provisions of this Act concerning unclassified personnel compensation, travel, equipment
purchases and other purchasing regulations shall not apply to the use of these funds.

72.9. (GP: Transfers of Appropriations) Agencies and
institutions shall be authorized to transfer appropriations within programs and within the agency
with notification to the Division of Budget and Analyses and Comptroller General. No such
transfer may exceed twenty percent of the program budget. Upon request, details of such
transfers may be provided to members of the General Assembly on an agency by agency basis.
Transfers of appropriations from personal service accounts to other operating accounts or from
other operating accounts to personal service accounts may be restricted to any established
standard level set by the Budget and Control Board upon formal approval by a majority of the
members of the Budget and Control Board.

72.10. (GP: Bank Procedures - State Treasury
A Bank) In any instances where Federal laws or regulations, relating to funds allotted to State
Government agencies, include requirements relating to banking procedures, the State Treasury
shall be deemed to meet the definition of a bank.

72.11. (GP: Federal Funds - DHEC, DSS,
DHHS, Aging - Disallowances) Amounts appropriated to the Department of Health and
Environmental Control, Department of Social Services, Department of Health and Human
Services, and Division on Aging may be expended to cover program operations of prior fiscal
years where adjustment of such prior years are necessary under federal regulations or audit
exceptions. All disallowances or notices of disallowances by any federal agency of any costs
claimed by these agencies shall be submitted to the State Auditor, the Senate Finance Committee
and the House Ways and Means Committee, within five days of receipt of such actions.

72.12. (GP: Family Foster Care Payments) The
Department of Disabilities & Special Needs, Department of Social Services, and
Department of Juvenile Justice shall furnish as Family Foster Care payments for individual foster
children under their sponsorship:

These specified amounts are for the basic needs of the foster children. Basic needs within this
proviso are identified as food (at home and away), clothing, housing, transportation, education
and other costs as defined in the U.S. Department of Agriculture study of "Annual Cost of
Raising a Child to Age Eighteen". Further, each agency shall identify and justify, as
another line item, all material and/or services, in excess of those basic needs listed above, which
were a direct result of a professional agency evaluation of clientele need. Legitimate medical
care in excess of Medicaid reimbursement or such care not recognized by Medicaid may be
considered as special needs if approved by the sponsoring/responsible agency and shall be
reimbursed by the sponsoring agency in the same manner of reimbursing other special needs of
foster children.

72.13. (GP: Fixed Student Fees) During the
current fiscal year, student fees at the State institutions of higher learning shall be fixed by the
respective Boards of Trustees as follows:

(1) Fees applicable to student housing, dining halls, student
health service, parking facility, laundries and all other personal subsistence expenses shall be
sufficient to fully cover the total direct operating and capital expenses of providing such
facilities and services over their expected useful life except those operating or capital expenses
related to the removal of asbestos.

(2) Student Activity Fees may be fixed at such rates as the
respective Boards shall deem reasonable and necessary.

72.14. (GP: Tech Educ. Colleges Student
Activity Fees) Notwithstanding any other provisions of this Act, funds at Technical Education
Colleges derived wholly from the activities of student organizations and from the operations of
canteens and bookstores may be retained by the college and expended only in accord with
policies established by the respective college's Area Commission and approved by the State
Board for Technical and Comprehensive Education.

72.15. (GP: Educational Fee Waivers) Senior
colleges, universities and technical colleges may offer educational fee waivers to no more than
two percent of the undergraduate student body.

72.16. (GP: Human Services Coordinating
Council) The General Assembly finds that the operation of health and human services may be
enhanced by closer working relationships among agencies at the state and local level. The
General Assembly finds that coordination at both levels provides opportunities to serve the
citizens of South Carolina better through (1) continued expansion of services integration and (2)
stronger communication among agencies delivering services.

In order to assist in, recommend, develop policy for, and supervise the
expenditure of funds for the continuation of service integration in South Carolina, there is
created a Human Services Coordinating Council, hereinafter, entitled the Council. The Council
shall consist of:

(1) The Director or Chief Executive Officer of
each of the following: Division on Aging, Department of Alcohol and Other Drug Abuse
Services, Commission for the Blind, Division for the Review of Foster Care of Children,
Department of Education, Department of Health and Environmental Control, Department of
Health and Human Services, Department of Juvenile Justice, Division of Veterans' Affairs, John
De La Howe School, Department of Mental Health, Department of Disabilities and Special
Needs, School for the Deaf and the Blind, Department of Social Services, Department of
Vocational Rehabilitation, Guardian ad Litem Program, Division of Continuum of Care,
Educational Television, Wil Lou Gray Opportunity School, Department of Corrections,
Probation, Parole and Pardon Services and the State Housing Finance and Development
Authority.

(2) The Governor or his designee.

(3) Other such members as the Council shall
deem appropriate.

The Council shall:

(1) Select a Director or Chief Executive
Officer on an annual basis to serve as the Council Chairperson. The Council Chairperson shall
be elected at the first quarterly meeting of the Council at the beginning of each new state fiscal
year. Nominees for this office must be members of the Council. The Chairperson of the Council
can succeed himself in that specific position no more than three times. In the event that this
office becomes vacant, the Executive Committee of the Council shall appoint a member of the
Council to fill the unexpired term of the office.

(2) Meet regularly to provide an opportunity for
collaboration and cooperation among member agencies.

The Council shall have as its goals:

(1) Identify and address priority health and
human needs and promote the availability of responsive resources.

(2) Promote cost-effective, efficient approaches
for the delivery of health and human services which include prevention, education, reduction of
dependency, promotion of self-sufficiency and delivery of services in the least restrictive, most
appropriate community-based and institutional settings.

(3) Provide coordination between the Council
members and the Office of the Governor in the development of the comprehensive State Health
and Human Services Plan.

(4) In cooperation with the Department of
Health and Human Services, coordinate and oversee efforts to integrate services information
among state agencies and between state and local agencies.

(5) Review and monitor service integration
efforts begun by the Human Services Integration Projects, and including:

(a) Developing standards for
case management activities and coordinating with local entities on service integration efforts,
and

(b) Receiving requests for
funding of projects designed to further integration of services, including review and approval of
such projects.

Member agencies and departments of the Council shall collect and provide
client information, including Social Security Number, for the Client Masterfile System, and for
development and use of a uniform client application database for statistical purposes and for
improving human services delivery systems for South Carolinians. For purposes of this
sub-section, the State, rather than an individual agency, will be the owner of the data. All
individual client information submitted by participating agencies or departments will be regarded
as confidential; the information collected may not be released, under any circumstances, to
entities or individuals outside the Client Masterfile System, State Data Oversight Council, or
client application database unless release is made of aggregate statistical information so that no
individual client may be identified. No data submitted may be released by the Client Masterfile
System except in a format approved by the Council. For the purposes of this sub-section only,
all State laws, regulations, or any rule of any State agency, department, board, or commission
having the effect or force of law that prohibits or is inconsistent with any provision of this
sub-section is hereby declared inapplicable to this sub-section. Each member agency or
department of the Council shall be required to take all steps reasonably necessary to effectuate
the waiver of federal rules, regulations, or statutes or the elimination of other factors that
interfere with collection or use of data by the Client Masterfile System or client application
database. Those steps shall include but not be limited to, the seeking of federal legislation, the
negotiation of agreements between the Council or State and any federal agency or board, the
application for the waiver of any federal rule, regulation or statute, and the seeking of client's
permission to share data. The Human Services Coordinating Council shall assume the duties and
responsibilities of the Aging Coordinating Council and the Long Term Care Council as specified
in Sections 43-21-120 through 43-21-140. The Council shall establish a long term care standing
committee and include on the committee a representative of the long term care industry, a
representative of the insurance industry, and a representative of the general public.

72.17. (GP: Employer Contributions Cost of
Agencies) It is the intent of the General Assembly that the amount so provided to each agency
or institution for employee benefits shall be sufficient to pay the employer contribution costs of
that agency. The Budget and Control Board is directed to devise a plan for the expenditure of
the funds appropriated for employer contributions and may require transfers of funds within an
agency or institution if it becomes evident that the employer contribution costs will exceed the
funds available for that purpose.

72.18. (GP: Dual Employment) Any employee
who is approved for dual employment must be paid in a timely manner. The secondary agency is
required to make payment of funds approved for and earned under dual employment within
fortyfive days of the beginning of the employment.

72.19. (GP: Payroll Schedule &
Compensation Restrictions) Except as otherwise provided in this Act, all appropriations for
compensation of State Employees shall be paid in twice-monthly installments to the person
holding such position. In order to provide a regular and permanent schedule for payment of
employees, it is hereby established that the payroll period shall begin on June 2, of the prior
fiscal year with the first pay period ending on June 16, of the prior fiscal year. The payroll
period shall continue thereafter on a twice-monthly schedule as established by the Budget and
Control Board. It is the intent of the General Assembly that this schedule, thus established, will
continue from one fiscal year to another without interruption, on a twice monthly basis. The
Budget and Control Board is authorized to approve any changes to this schedule where
circumstances are deemed justifiable.

The appropriated salaries for specified positions shall mean the maximum
compensation for such position, except as specifically provided in other provisions of this act,
and in any case where the head of any department can secure the services for a particular
position or work at a lower rate than the salary specified in this Act, authority for so doing is
hereby given.

No employee of any state department or institution shall be paid any
compensation from any other department of the state government except those approved under
the provisions of Regulation 19-702.09 of the 1976 Code, as amended, and no employee of any
department or institution shall be paid travel expenses by any other department or institution
without approval of the agency by which he is regularly employed. The Comptroller General
shall report, after June thirtieth of each year, to the Senate Finance Committee and the House
Ways and Means Committee the names of all employees receiving dual compensation and the
amounts received.

The provisions of Regulation 19-707.02 and Section 8-5-10 of the 1976 Code,
as amended, shall not apply to employees hired for 120 days or less.

72.20. (GP: Discrimination Policy) It is the
policy of the State of South Carolina to recruit, hire, train, and promote employees without
discrimination because of race, color, sex, national origin, age, religion or physical disability.
This policy is to apply to all levels and phases of personnel within state government, including
but not limited to recruiting, hiring, compensation, benefits, promotions, transfers, layoffs,
recalls from layoffs, and educational, social, or recreational programs. It is the policy of the
State to take affirmative action to remove the disparate effects of past discrimination, if any,
because of race, color, sex, national origin, age, religion or physical disability.

Each state agency shall submit to the State Human Affairs Commission
employment and filled vacancy data by race and sex by October 31, of each year.

In accordance with Section 1-13-110 of the South Carolina Code of Laws of
1976, as amended, the Human Affairs Commission shall submit a report on the status of State
Agencies' Affirmative Action Plans and Programs to the General Assembly by February 1 each
year. This report shall contain the total number of persons employed in each job group, by race
and sex, at the end of the preceding reporting period, a breakdown by race and sex of those hired
or promoted from within the agency during the reporting period, and an indication of whether
affirmative action goals were achieved. For each job group referenced in the Human Affairs
report, where the hiring of personnel does not reflect the percentage goals established in the
agency's affirmative action plan for the year in question, the State agency shall submit a detailed
explanation to the Human Affairs Commission by February 15, explaining why goals were not
achieved.

The Human Affairs Commission shall review the explanations and notify the
Budget and Control Board of any agency not in satisfactory compliance with meeting its stated
goals.

The Budget and Control Board shall notify any agency not in compliance that
their request for additional appropriations for the current appropriation cycle, may not be
processed until such time as the Budget and Control Board, after consultation with the Human
Affairs Commission, is satisfied that the agency is making a good faith effort to comply with its
affirmative action plan, and that the compliance must be accomplished within a reasonable
length of time to be determined by the mission and circumstances of the agency. This
requirement shall not affect additional appropriation requests for public assistance payments or
aid to entities. This section does not apply to those agencies that have been exempted from the
reporting requirements of the Human Affairs Commission.

72.21. (GP: RIF, Recall Procedures, Residency
Preference) Notwithstanding any other provision of law, when a vacancy occurs in a state
agency, other than institutions of higher education, or when an agency acts to fill a new position,
the agency shall give preference to residents of this State, if the two are equally qualified for the
vacancy or new position.

72.22. (GP: Temporary Grant Funded or Time
Limited Funded Positions) Notwithstanding any other provision of law or this Act, state
agencies and institutions may, at their discretion, hire employees to fill temporary grant positions
specified in federal grants, public charity grants, private foundation grants, research grants and
positions with time limited funding approved or authorized by the appropriate state authority in
accordance with the following provisions:

A. Only those funds authorized within the
approved federal grant, public charity grant, private foundation grant, research grant, or time
limited funds for a specified project can be used to pay the salaries and/or benefits of temporary
employees hired under this provision.

B. Temporary grant or time limited positions,
employees, and the conditions of their employment shall be reported in accordance with
provisions developed by the Division of Budget and Analyses of the Budget and Control Board.

C. Positions established under this provision
must be limited to and must not exist beyond the duration of the time limited project or grant or
any subsequent renewal of it. When the grant, time limited project or any subsequent renewal
ends, temporary grant or time limited project employees must be terminated and their positions
will cease to exist. Temporary grant or time limited project employees will be exempt from the
provisions of Sections 8-17-310 through 8-17-380 of the 1976 Code, as amended. State agencies
and institutions must terminate all temporary grant or time limited project positions at any time
funding is terminated or is insufficient to continue payments under the conditions of the grant or
time limited project.

D. Temporary grant or time limited project
employees may be eligible for the same benefits, excluding permanent or probationary
employment status, available to permanent state employees provided that such funds are
available within the grant or time limited project.

E. Temporary grant or time limited project
employees shall be deemed to be employed at will. The temporary grant or time limited project
employee shall not be entitled to any compensation beyond the date of termination, other than
for such part of the grant or time limited project that has been performed.

F. Discretionary determinations by a state
agency or institution as to whether to hire an employee pursuant to this proviso are final and not
subject to administrative or judicial appeal.

72.23. (GP: Personal Service Reconciliation,
FTEs) The General Assembly expresses its continuing concern over the control of the number of
personnel employed by the State of South Carolina. This concern is evidenced in the 1980
Public Employment Report of the United States Bureau of Census. It is further declared to be
the intent of the General Assembly to continue to take positive steps to reduce the number of
personnel employed in the future, without unduly hampering the legitimate functions of state
government.

In order to obtain the necessary control over the number of employees, the
Budget and Control Board is hereby directed to maintain close supervision over the number of
state employees, and to require specifically the following:

1. That no state agency exceed the total
authorized number of full-time equivalent positions and those funded from State sources as
provided in each section of this Act except by majority vote of the Budget and Control Board.

2. That the Division of Budget and Analyses
shall maintain and make, as necessary, periodic adjustments thereto, an official record of the
total number of authorized full-time equivalent positions by agency for State and Total funding
sources.

(a) That within thirty (30) days
of the passage of the Appropriation Act or by August 1, whichever comes later, each agency of
the State must have established on the Budget and Control Board records all positions authorized
in the Act. After that date, the Board shall delete any non-established positions immediately
from the official record of authorized full-time equivalent positions. No positions shall be
established by the Board in excess of the total number authorized in the Board record of
authorized full-time equivalent positions. Each agency may, upon notification to the Budget and
Control Board, change the funding source of State FTE positions established on the Budget and
Control Board records as necessary to expend federal and other sources of personal service funds
in an effort to conserve or stay within the state appropriated personal service funds. Each agency
may, upon notification to the Budget and Control Board, transfer FTEs between programs as
needed to accomplish the agency mission. No agency shall change funding sources that will
cause the agency to exceed the authorized number of state or total full-time equivalent positions.

(b) By September 30, the
Board shall prepare a personal service detail, by agency, which shows each position established
for the fiscal year and the amount of funds required, by source of funds, to support the position
for the fiscal year at a funding level of 100% and the Board shall then reconcile each agency's
personal service detail with the agency's personal service appropriation as contained in the Act
adjusted for any pay increases, and any other factors necessary to reflect the agency's personal
service funding level. The Board shall provide a copy of each agency's personal service
reconciliation to the Senate Finance and House Ways and Means Committees.

(c) Any position which is
shown by the reconciliation to be unfunded or significantly underfunded may be deleted at the
direction of the Budget and Control Board .

(d) Full-time equivalent (FTE)
positions shall be determined under the following guidelines:

1. The annual
work hours for each FTE shall be the agency's full-time standard annual work hours.

2. The State
FTE shall be derived by multiplying the state percentage of budgeted funds for each position by
the FTE for that position.

3. All
institutions of higher education shall use a value of 0.75 FTE for each position determined to be
full-time faculty with a duration of nine (9) months.

The FTE method of accounting shall be utilized for all authorized positions.

3. That the number of positions authorized in
this Act shall be reduced in the following circumstances:

(a) Upon request by an agency.

(b) When anticipated federal
funds are not made available.

(c) When the Budget and
Control Board, through study or analysis, becomes aware of any unjustifiable excess of positions
in any state agency.

4. The Budget and Control Board shall annually
reconcile personal service funds with full-time employee count to determine unfunded positions
which will be eliminated no later than January 15 of the current fiscal year unless specifically
exempted elsewhere in this act or by the State Budget and Control Board. The State Budget and
Control Board must report the full-time employee count and unfunded position status to the
Senate Finance Committee and the Ways and Means Committee by February 1 of the current
fiscal year.

5. That no new permanent positions in state
government shall be funded by appropriations in acts supplemental to this Act but temporary
positions may be so funded.

6. The provisions of this section shall not apply
to personnel exempt from the State Classification and Compensation Plan under Item I of
Section 8-11-260 of the 1976 Code.

The Governor, in making his appropriation recommendations to the Ways and
Means Committee, must provide that the level of personal service appropriation recommended
for each agency is at least 97% of the funds required to meet 100% of the funds needed for the
full-time equivalents positions recommended by the Governor (exclusive of new positions).

72.24. (GP: Allowance for Residences &
Compensation Restrictions) That salaries paid to officers and employees of the State, including
its several boards, commissions, and institutions shall be in full for all services rendered, and no
prerequisites of office or of employment shall be allowed in addition thereto, but such
prerequisites, commodities, services or other benefits shall be charged for at the prevailing local
value and without the purpose or effect of increasing the compensation of said officer or
employee. The charge for these items may be payroll deducted at the discretion of the
Comptroller General or the chief financial officer at each agency maintaining its own payroll
system. This shall not apply to the Governor's Mansion, nor for department-owned housing used
for recruitment and training of Mental Health Professionals, nor to guards at any of the State's
penal institutions and nurses and attendants at the Department of Mental Health, and the
Department of Disabilities & Special Needs, and registered nurses providing clinical care at
the MUSC Medical Center, nor to the Superintendent and staff of John de la Howe School, nor
to the cottage parents and staff of Wil Lou Gray Opportunity School, nor to full-time or part-time
staff who work after regular working hours in the SLED Communications Center or
Maintenance Area, nor to the Directors of John G. Richards Campus, Willow Lane Campus, and
the Reception and Evaluation Center at the Department of Juvenile Justice nor to the Residence
Dormitory Director and the Assistant Residence Director at the Governor's School for Science
and Mathematics. The Presidents of those State institutions of higher learning authorized to
provide on-campus residential facilities for students may be permitted to occupy residences on
the grounds of such institutions without charge.

Any state institution of higher learning may provide a housing allowance to the
President in lieu of a residential facility, the amount to be approved by the Budget and Control
Board.

That the following may be permitted to occupy residences owned by the
respective Departments without charge: the Commissioner of the Department of Corrections, the
Director of the Department of Mental Health, the Farm Director, Farm Managers, and Specialists
employed at the Wateree River Correctional Institution, Walden Correctional Institution,
MacDougall Youth Correctional Center, and Givens Youth Correctional Center; the S. C. State
Commission of Forestry fire tower operators, forestry aides, and caretaker at central
headquarters; the Department of Natural Resources' Game Management Personnel, Fish
Hatchery Superintendents, Lake Superintendent, and Fort Johnson Superintendent; the
Department of Parks, Recreation and Tourism field personnel in the State Parks Division; the
Agricultural Aide at the Department of Juvenile Justice Farm; Director of Wil Lou Gray
Opportunity School; President of the School for the Deaf and the Blind; houseparents for the
Commission for the Blind; S.C. Department of Health and Environmental Control personnel at
the State Park Health Facility and Camp Burnt Gin; Assistant Director of Residence Life and a
student counselor at Lander University; Clemson University's Head Football Coach; the
Department of Disabilities & Special Needs' physicians and other professionals at Whitten
Center, Clemson University Off-Campus Agricultural Staff and Housing Area Coordinators; and
University of South Carolina's Manager of Bell Camp Facility, Housing Maintenance Night
Supervisors, Residence Life Directors, temporary and transition employees, and emergency
medical personnel. Except in the case of elected officials, the fair market rental value of any
residence furnished to a State Employee shall be reported by the State Agency furnishing the
residence to the Agency Head Salary Commission by October 1, of each fiscal year.

All salaries paid by departments and institutions shall be in accord with a
uniform classification and compensation plan, approved by the Budget and Control Board,
applicable to all personnel of the State Government whose compensation is not specifically fixed
in this act. Such plan shall include all employees regardless of the source of funds from which
payment for personal service is drawn. The Division of Budget and Analyses of the Budget and
Control Board is authorized to approve temporary salary adjustments for classified and
unclassified employees who perform temporary duties which are limited by time and/or funds.
When approved, a temporary salary adjustment shall not be added to an employee's base salary
and shall end when the duties are completed and/or the funds expire. Academic personnel of the
institutions of higher learning and other individual or group of positions that cannot practically
be covered by the plan may be excluded therefrom but their compensations as approved by the
Division of Budget and Analyses shall, nevertheless, be subject to review by the Budget and
Control Board. Salary appropriations for employees fixed in this Act shall be in full for all
services rendered, and no supplements from other sources shall be permitted or approved by the
State Budget and Control Board. With the exception of travel and subsistence, legislative study
committees shall not compensate any person who is otherwise employed as a full-time state
employee. Salaries of the heads of all agencies of the State Government shall be specifically
fixed in this Act and no salary shall be paid any agency head whose salary is not so fixed.
Commuter mileage on non-exempt state vehicles shall be considered as income and reported by
the Comptroller General in accordance with IRS regulations. As long as there is no impact on
appropriated funds, state agencies and institutions shall be allowed to spend public funds and/or
other funds for designated employee award programs which shall have written criteria approved
by the agency governing board or commission. For purposes of this section, monetary awards, if
any, shall not be considered a part of an employee's base salary, a salary supplement, or a
prerequisite of employment. The names of all employees receiving monetary awards and the
amounts received shall be reported annually to the South Carolina Division of Budget and
Analyses.

In the case of lodging furnished by certain higher education institutions to
employees, the prevailing local rate does not apply if the institution meets the exceptions for
inadequate rent described in the current Internal Revenue Code Section 119(d)(2). To meet the
exception, rental rates must equal the lesser of five percent of the appraised value of the qualified
campus lodging, or the average of the rentals paid by individuals (other than employees or
students of the educational institution) during the calendar year for lodging provided by the
educational institution which is comparable to the qualified campus lodging provided to the
employee, over the rent paid by the employee for the qualified campus lodging during the
calendar year. The appraised value shall be determined as of the close of the calendar year in
which the taxable year begins, or, in the case of a rental period not greater than one year, at any
time during the calendar year in which the period begins.

72.25. (GP: MUSC Hospital Services Rates)
The Board of the Medical University of South Carolina shall provide hospital services to state
employees and officials of state government at a rate not to exceed the payment rates to hospitals
provided by the employee's insurance program(s). Private physician fees, psychiatry, and all
dental are not included.

72.26. (GP: Universities & Colleges -
Allowance for Presidents) Presidents of the University of South Carolina, Clemson University,
the Medical University of South Carolina, The Citadel, Winthrop University, South Carolina
State University, Francis Marion University, University of Charleston, and Lander University
must not be paid a fixed allowance for personal expenses incurred in connection with the
performance of their official duties. Reimbursements may be made to the Presidents from funds
available to their respective institutions for any personal expenses incurred provided that all
requests for reimbursement are supported by properly documented vouchers processed through
the normal accounting procedures of the institutions.

72.27. (GP: Replacement of Personal Property)
The Department of Juvenile Justice, Department of Corrections, Probation, Parole and Pardon
Services, Department of Mental Health, Department of Disabilities & Special Needs and
School for the Deaf and the Blind may replace the personal property of an employee which has
been damaged or destroyed by a client while in custody of the agency. The replacement of
personal property may be made only if the loss has resulted from actions by the employee
deemed to be appropriate and in the line of duty by the agency head and if the damaged or
destroyed item is found by the agency head to be reasonable in value, and necessary for the
employee to carry out the functions and duties of his employment. Replacement of damaged or
destroyed items shall not exceed $250 per item, per incident. Each agency must have guidelines
to insure the reasonableness of the replacement payments.

72.28. (GP: Law Enforcement Officer Retiree
Weapon Purchase) All state employees, who are commissioned law enforcement officers upon
retirement, if vested, may purchase their assigned weapon at a reasonable fee.

72.29. (GP: Business Expense Reimbursement)
Agency heads and Deputy Commissioners or Deputy Directors designated by Agency heads may
receive reimbursements for business expenses incurred while performing their official duties,
provided that receipts are presented when seeking reimbursement and justification is submitted
to document the time, place, and purpose of the expense as well as the names of the individuals
involved. The Budget and Control Board shall promulgate regulations governing these
expenses.

72.30. (GP: Per Diem) The per diem allowance
of all boards, commissions and committees shall be at the rate of Thirty-five ($35) Dollars per
day. No full-time officer or employee of the State shall draw any per diem allowance for service
on such boards, commissions or committees.

72.31. (GP: Travel Spouse of Governor &
Lt. Governor) Notwithstanding any other provision of law, the spouses of the Governor and the
Lieutenant Governor of the State are authorized to receive reimbursement of actual expenses
when accompanying the Governor or the Lieutenant Governor on official state business.

72.32. (GP: Travel - Subsistence Expenses
& Mileage) Travel and subsistence expenses, whether paid from State appropriated,
Federal, local or other funds, shall be allowed in accordance with the following provisions:

A. Unless otherwise provided in paragraphs B
through H of this section, all employees of the State of South Carolina or any agency thereof
including employees and members of the governing bodies of each technical education center
while traveling on the business of the State shall, upon presentation of a paid receipt, be allowed
reimbursement for actual expenses incurred for lodging. Agencies may contract with lodging
facilities to pay on behalf of an employee. Failure to maintain proper control of direct payments
for lodging may result in the revocation of the agency's authority by the Comptroller General or
the State Auditor. The employee shall also be reimbursed for the actual expenses incurred in the
obtaining of meals except that such costs shall not exceed ($25) per day within the State of South
Carolina. For travel outside of South Carolina the maximum daily reimbursement for meals
shall not exceed ($32). Agencies may contract with food or dining facilities to pay for meals on
behalf of employees in accordance with rules and regulations established by the Budget and
Control Board. It shall be the responsibility of the agency head to monitor the charges for
lodging which might be claimed by his employees in order to determine that such charges are
reasonable, taking into consideration location, purpose of travel or other extenuating
circumstances. The provisions of this item shall not apply to Section 42-3-40 of the 1976 Code.

B. That employees of the State, when traveling
outside the United States, Canada, and Puerto Rico upon promotional business for the State of
South Carolina shall be entitled to actual expenses for both food and lodging.

D. Non-legislative members of committees
appointed pursuant to Acts and Resolutions of the General Assembly whose membership
consists solely of members of the General Assembly or members of the General Assembly and
other personnel who are not employees of the State of South Carolina shall be allowed
subsistence expenses of $35 per day while traveling on official business. Members of such
committees may opt to receive actual expenses incurred for lodging and actual expenses incurred
in the obtaining of meals in lieu of the allowable subsistence expense.

E. Members of the State Boards, Commissions,
or Committees whose duties are not full-time and who are paid on a per diem basis, shall be
allowed reimbursement for actual expenses incurred at the rates provided in Paragraph A and I
of this Section while away from their places of residence on official business of the State. One
person accompanying a handicapped member of a State Board, Commission, or Committee on
official business of the State shall be allowed the same reimbursement for actual expenses
incurred at the rates provided in Paragraph A through I of this Section.

F. No subsistence reimbursement shall be
allowed to a Justice of the Supreme Court or Judge of the Court of Appeals while traveling in the
county of his official residence. When traveling on official business of said court within 50
miles outside the county of his official residence, a Supreme Court Justice and a Judge of the
Court of Appeals shall be allowed subsistence expenses in the amount of $35 per day plus such
mileage allowance for travel as is provided for other employees of the State. When traveling on
official business of said Court 50 or more miles outside the county of his official residence, each
Justice and Judge of the Court of Appeals shall be allowed subsistence expenses in the amount as
provided in this Act for members of the General Assembly plus such mileage allowance for
travel as is provided for other employees of the State. The Chief Justice, or such other person as
he designates, while attending the Conference of Chief Justices and one member of the Supreme
Court while attending the National Convention of Appellate Court Judges, and three Circuit
Judges while attending the National Convention of State Trial Judges shall be allowed actual
subsistence and travel expenses.

Upon approval of the Chief Justice, Supreme Court Justices, Judges of the Court
of Appeals, Circuit Judges, and Family Court Judges shall be reimbursed for actual expenses
incurred for all other official business requiring out-of-state expenses at the rate provided in
paragraph A of this section.

G. No subsistence reimbursements are allowed
to a Circuit Judge, a Family Court Judge, or an Administrative Law Judge while holding court
within the county in which he resides. While holding court or on other official business outside
the county, within fifty miles of his residence, a Circuit Court Judge, Family Court Judge, or an
Administrative Law Judge is entitled to a subsistence allowance in the amount of $35 per day.
While holding court or on other official business at a location fifty miles or more from his
residence, a Circuit Court, Family Court or Administrative Law Judge is entitled to a subsistence
allowance in the amount as provided in this Act for members of the General Assembly.

H. Any retired Justice, Circuit Court Judge or
Family Court Judge or Master-in-Equity appointed by the Supreme Court to serve as a Special
Circuit Judge, Family Court Judge, Appeals Court Judge, or Acting Associate Justice shall serve
without pay but shall receive the same allowance for subsistence, expenses, and mileage as
provided in Part I for Circuit Court Judges.

I. No expense shall be allowed an employee
either at his place of residence or at the official headquarters of the agency by which he is
employed except as provided in paragraph E, of this section. When an employee is assigned to
work a particular territory or district, and such territory or district and his official headquarters
are in different localities or sections of the State, expenses may be allowed for the necessary
travel to his official headquarters. The members of the Workers' Compensation Commission,
Public Service Commission and the Employment Security Commission may be reimbursed at the
regular mileage rate of one round trip each week from their respective homes to Columbia. No
subsistence reimbursement shall be allowed to a member of the Workers' Compensation
Commission, Public Service Commission or the Employment Security Commission while
traveling in the county of his official residence. When traveling on official business of the
Commission within 50 miles outside the county of his official residence, a member of the
Workers' Compensation Commission, Public Service Commission or the Employment Security
Commission shall be allowed subsistence expenses in the amount of $35 per day. When
traveling on official business of the Commission 50 or more miles outside the county of his
official residence, each member shall be allowed a subsistence allowance in the amount as
provided in this act for members of the General Assembly. When out-of-state, members of the
Workers' Compensation Commission, Public Service Commission and the Employment Security
Commission may claim the established amount of per diem, as stated in the General
Appropriation Act, or actual expenses as deemed reasonable by the Comptroller General.

J. When an employee of the State shall use his
or her personal automobile in traveling on necessary official business, a charge of 31.5 cents per
mile will be allowed for the use of such automobile and the employee shall bear the expense of
supplies and upkeep thereof. Whenever State provided motor pool vehicles are reasonably
available and their use is practical and an employee of the State shall request for his own benefit
to use his or her personal vehicle in traveling on necessary official business, a charge of 27.5
cents per mile will be allocated for the use of such vehicle and the employee shall bear the
expense of supplies and upkeep thereof. When such travel is by a State-owned automobile, the
State shall bear the expense of supplies and upkeep thereof but no mileage will be allowed.
Agencies and employees are directed to use State fueling facilities to the maximum extent
possible, when such use is cost beneficial to the State. When using commercial fueling facilities,
operators of State-owned vehicles are directed to use self-service pumps. In traveling on the
business of the State, employees are required to use the most economical mode of transportation,
due consideration being given to urgency, schedules and like factors.

Mileage between an employee's home and his/her place of employment is not
subject to reimbursement. However, when an employee leaves on a business trip directly from
his/her home, and does not go by the employee's headquarters, the employee shall be eligible for
reimbursement for actual mileage beginning at his/her residence.

K. That a State agency may advance travel and
subsistence expense monies to employees of that agency for the financing of ordinary and
necessary travel required in the conducting of the business of the agency. The Budget and
Control Board is directed to develop and publish rules and regulations pertaining to the
advancing of travel expenses and no State agency shall make such advances except under the
rules and regulations as published. All advances for travel and subsistence monies shall be
repaid to the agency within thirty (30) days after the end of the trip or by the end of the fiscal
year, whichever comes first.

L. That the State institutions of higher learning
are authorized to reimburse reasonable relocation expenses for new employees when such
reimbursements are considered by the agency head to be essential to successful recruitment of
professionally competent staff members.

M. The State Budget and Control Board is authorized to
promulgate and publish rules and regulations governing travel and subsistence payments.

N. No state funds may be used to purchase first
class airline tickets.

72.33. (GP: Asbestos Litigation Funds) All
funds involved in the settlement of asbestos litigation cases, with the exception of those funds
involving the University of South Carolina system and Clemson University, must be deposited
into an interest bearing account in the State Treasurer's Office entitled "Asbestos Expense
Trust Account". The University of South Carolina system and Clemson University must
deposit all funds involved in the settlement of asbestos litigation into separate institutional
interest bearing accounts entitled "Asbestos Expense Trust Account", with each
institution's name appropriately captioned in their respective accounts, to be maintained in the
State Treasurer's Office. These accounts shall only be used for expenses relating to asbestos
litigation, asbestos abatement, or other asbestos related expenses or projects. Such projects must
be approved by the Budget and Control Board after review by the Joint Bond Review
Committee.

72.34. (GP: State Port Authority Funds - Rent)
Any funds derived by the State Port Authority from the rental, lease or sale of any of its facilities
shall be expended for the benefit of the particular Port where such facilities are located.

72.35. (GP: Rental Charges, Collections State
Offices) Subsection (a). The Budget and Control Board is hereby directed to assess and collect
a rental charge from all departments and agencies of the State Government occupying space in
State-controlled office buildings. The amount charged each department or agency shall be
calculated on a square foot, or other equitable basis of measurement, and at such rates as will
yield sufficient total annual revenue to cover, unless the Budget and Control Board determines
otherwise, in priority order, both (1) the annual principal and interest due on the Capital
Improvement Obligations authorized by Act No. 829 of the 1964 Acts, Act No. 1273 of the 1970
Acts and Act No. 508 of the 1971 Acts and Act No. 1377 of the 1968 Acts as amended for
projects administered by the Division of General Services and (2) maintenance and operation
costs of State-controlled office buildings in the City of Columbia. The amount so collected
which is applicable to the payment of principal and interest due on obligations authorized by Act
1377 of the 1968 Acts as amended shall be paid into the State's General Fund to apply on debt
service appropriations under the Section 119 of this Act.

Subsection (b). All departments and agencies against which rental charges are
assessed and whose operations are financed in whole or in part by Federal and/or other
non-appropriated funds are directed to apportion the payment of such charges equitably among
all such funds, so that each shall bear its proportionate share. All appropriations in this Act
applicable to the rental of space in State-controlled buildings (exclusive of the Department of
Transportation), shall be available only for payment of that portion of rental charges applicable
to State-appropriated operations.

Subsection (c). Rental collections shall be deposited by the Budget and Control
Board in the State Treasury in a special account and shall be expended only for (1) payment of
principal and interest due on the obligations referred to in Subsection (a) above and (2)
maintenance and operations costs of the buildings referred to in Subsection (a) above.

72.36. (GP: Organizations Receiving State
Appropriations Report) Each organization receiving a contribution in this Act shall render to the
state agency making the contribution by November 1 of the fiscal year in which funds are
received, an accounting of how the State funds will be spent, a copy of the adopted budget for
the current year, and also a copy of the organization's most recent operating financial statement.
The funds appropriated in this Act for contributions shall not be expended until the required
financial statements are filed with the appropriate state agency. No funds in this Act shall be
disbursed to organizations or purposes which practice discrimination against persons by virtue of
race, creed, color or national origin. The State Auditor shall review and audit, if necessary, the
financial structure and activities of each organization receiving contributions in this Act and
make a report to the General Assembly of such review and/or audit, when requested to do so by
the Budget and Control Board.

72.37. (GP: Information Technology - Report
of Requested Increases) The Budget and Control Board, through the Division of Budget and
Analyses, is authorized and directed to identify all requested increases for information
technology for Agencies, Institutions or Departments, with the exception of colleges, universities
and technical institutions, compile the requests into one report, evaluate the requests and
forward the evaluation to the Governor, the Chairman of Senate Finance Committee and the
Chairman of the House Ways & Means Committee.

72.38. DELETED

72.39. (GP: Printing Costs Disclosure on State
Publications) All agencies using appropriated funds shall print on the last page of all bound
publications the following information:

(1) Total Printing Cost

(2) Total Number of Documents Printed

(3) Cost Per Unit

The President Pro Tempore of the Senate, the Speaker of the House, Legislative
Printing and Information Technology Resource, the Presidents of each institution of higher
education, and the State Board for Technical and Comprehensive Education may exempt from
this requirement, documents published by their respective agencies. Agency publications which
are produced for resale are also exempt from this requirement. Publications of
public relations nature, produced by Parks, Recreation and Tourism, and the Division of State
Development are exempt from this requirement.

72.40. (GP: PORS Retirees Salary Limit)
Notwithstanding the provisions of subsections (1) and (2) of Section 9-11-90, a retired member
of the System may return to employment covered by the System and earn up to fifteen thousand
dollars a fiscal year without affecting the monthly retirement allowance he is receiving from the
System. If the retired member continues in service after having earned fifteen thousand dollars
in a fiscal year, his retirement allowance must be discontinued during the period of service in the
remainder of the fiscal year. If the employment continues for at least forty-eight consecutive
months, the provisions of Section 9-1-1590 apply. The provisions of this section do not apply to
an employee or member of the System who has retired mandatorily because of age pursuant to
Section 9-1-1530.

72.41. (GP: SCRS Retirees Salary Limit)
Notwithstanding any other provision of law, a retired member of the System may return to
employment covered by the System and earn up to fifteen thousand dollars a fiscal year without
affecting the monthly retirement allowance he is receiving from the System. If the retired
member continues in service after having earned fifteen thousand dollars in a fiscal year, his
retirement allowance must be discontinued during his period of service in the remainder of the
fiscal year. If the employment continues for at least forty-eight consecutive months, the
provisions of Section 9-1-1590 apply. The provisions of this section do not apply to an
employee or member of the System who has retired mandatorily because of age pursuant to
Section 9-1-1530.

72.42. (GP: State Owned Aircraft -
Maintenance Logs) Each agency having in its custody one or more aircraft shall maintain a
continuing log on all flights, which shall be open for public inspection. Any and all aircraft
owned or operated by agencies of the State Government shall be used only for official business.
The Division of Aeronautics and other agencies owning and operating aircraft may furnish
transportation to the Governor, Constitutional Officers, members of the General Assembly,
members of state boards, commissions, and agencies and their invitees for official business only;
no member of the General Assembly, no member of a state board, commission or committee, and
no state official shall use any aircraft of the Division of Aeronautics unless the member or
official files within forty-eight hours after the time of departure of the flight with the Division of
Aeronautics a sworn statement certifying and describing the official nature of his trip; and no
member of the General Assembly, no member of a state board, commission or committee, and no
state official shall be furnished air transportation by a state agency other than the Division of
Aeronautics unless such agency prepares and maintains in its files a sworn statement from the
highest ranking official of the agency certifying that the member's or state official's trip was in
conjunction with the official business of the agency. Official business shall not include routine
transportation to and from meetings of the General Assembly or committee meetings for which
mileage is authorized.

All logs shall be signed by the parties using the flight and the signatures shall be
maintained as part of the permanent record of any agency. All passengers shall be listed on the
flight log by their legal name; passengers flying with an appropriate official of SLED or the
Division of State Development whose confidentiality must, in the opinion of SLED or the
Division, be protected shall be listed in writing on the flight log as "Confidential Passenger
SLED or the Division of State Development (strike one)" and the appropriate official of
SLED or the Division shall certify to the agency operating the aircraft the necessity for such
confidentiality.

Violation of the above provisions of this section is prima facie evidence of a
violation of Section 8-13-410(1) of the 1976 Code and shall subject a violating member of the
General Assembly to the ethics procedure of his appropriate house and shall subject a violating
member of a state board, commission or committee, or a state official to the applicable ethics
procedure relating to them as provided by law. The above provisions do not apply to aircraft of
the Division of Aeronautics when used by the Medical University of South Carolina, nor to
aircraft of the athletic department or the educational foundations of any state-supported
institution of higher education.

Aircraft owned by agencies of state government shall not be leased to
individuals for their personal use. * The Ethics Commission is authorized to make
investigations of state agency records relating to these reporting requirements. Officials
violating the 48 hour reporting requirement in this paragraph are subject to a non-suspendable
$100 fine.

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

72.43. (GP: State Primary Prevention Strategy)
The Human Services Coordinating Council is designated as the entity responsible for developing
and coordinating the implementation of a plan for a State Primary Prevention Strategy. Primary
prevention is defined as programs which seek to prevent the onset of disease, disability or high
risk behaviors through the enhancement of individual and community protective factors and the
reduction of risk factors. The plan must be submitted to the Governor, Chairman of Senate
Finance and Chairman of Ways and Means for approval. Upon their approval, participating
agencies are authorized to utilize those funds identified as the State Primary Prevention Strategy
in Section 30. The project plan must provide: 1) A primary prevention mission statement; 2)
Project objectives; 3) Current and proposed service efforts and accomplishment indicators
(input, output, outcomes and efficiency); 4) A description of the anticipated benefits and costs;
and 5) An independent evaluator component.

72.44. (GP: Carry Forward) Each agency shall
be authorized to carry forward unspent general fund appropriations from the prior fiscal year into
the current fiscal year, up to a maximum of 10% of its original general fund appropriations less
any appropriation reductions for the current fiscal year. Agencies shall not withhold services in
order to carry forward general funds.

This provision is suspended if necessary to avoid a fiscal year-end general fund
deficit. For purposes of this proviso, the amount of the general fund surplus/deficit shall be
considered after all appropriations from the Capital Reserve Fund have been allowed and before
any transfers from the General Reserve. The amount of general funds needed to avoid a
year-end deficit shall be reduced proportionately from each agency's carry forward amount.

Agencies which have separate general fund carry forward authority must
exclude the amount carried forward by such separate authority from their base for purposes of
calculating the 10% carry forward authorized herein. Any funds that are carried forward as a
result of this provision are not considered part of the base of appropriations for any succeeding
years. Notwithstanding any other provisions of law, state agencies and institutions shall be
allowed to spend carry forward monies from the previous fiscal year to provide selected
employees a one-time lump sum bonus not to exceed $1,000, based on objective guidelines
established by the Budget and Control Board. This payment is not a part of the employee's base
salary and is not earnable compensation for purposes of employee and employer contributions to
respective retirement systems.

72.45. (GP: Publication List for General
Assembly) With the exception of the Governor's Executive Budget and related documents and
telephone directories, and notwithstanding any other requirement, mandate, or provision of this
act to the contrary, no agency, department, or entity of state government shall provide the
General Assembly with hard copies of a publication whether or not the publication, report, or
other document is required to be furnished to the General Assembly by law, and a publication
only may be provided to a member of the General Assembly if the member requests the
publication. Nothing herein prevents the agency or department from transmitting such
publications to the Office of Legislative Printing and Information Technology Resources
(LPITR) by electronic medium in such format and form and in accordance with such technical
standards as may be established by LPITR. LPITR may make any such information transmitted
available through its network. Any report governed by the requirements of this proviso may be
published in hard copy form if authorized by the Speaker of the House and the President Pro
Tempore of the Senate.

72.46. (GP: Regulatory Audit) Each agency
shall conduct a jurisdictional audit for the purpose of identifying laws, regulations and provisos
which are not being used or no longer need to be regulated. After identifying these laws, repeals
are to be drafted for submission to the General Assembly.

72.47. (GP: Written Notice of Fee Changes)
All state administrative or executive agencies which have the authority to impose charges, fines,
fees, levies, or penalties, of any nature, pursuant to statutory or regulatory authorization, shall
give written notice if requested to any person affected by or subject to the assessment prior to
collection. The notice required pursuant to this section shall include an appropriate citation to
the relevant statutory or regulatory provision which authorizes the imposition of the assessment.
No assessment made by a state administrative or executive agency against an affected person
shall be valid, absent express statutory or regulatory authorization.

72.48. (GP: TEFRA-Tax Equity and Fiscal
Responsibility Act) It is the intent of the General Assembly that the State Medicaid Plan be
amended to provide benefits for disabled children as allowed by the Tax Equity and Fiscal
Responsibility Act (TEFRA) option. State agencies, including but not limited to, the Office of
the Governor - the Continuum of Care, the Department of Health and Environmental Control, the
Department of Mental Health, the Department of Disabilities and Special Needs, and the
Department of Health and Human Services shall collectively review and identify existing state
appropriations within their respective budgets that can be used as state match to serve these
children. Such funds shall be used effective January 1, 1995 to implement TEFRA option
benefits.

72.49. (GP: Federally Declared Disaster
Reimbursement) Notwithstanding Section 11-9-125, any state agency, college, or university
which has a grant agreement with and has received prior disaster reimbursements for losses
incurred during federally declared disasters from the Office of State Public Assistance and where
said state agency, college or university may not have received full reimbursement for eligible
program management costs associated with disaster recovery activities incurred during such
disasters may seek further reimbursement for such disasters and is authorized to retain these
funds for use within the agency's operating budget.

72.50. (GP: Frequent Flyer Premiums) State
agencies and employees shall select air carriers based on cost and time criteria, not on whether
frequent flyer premiums are given. State agencies should ensure that employees earning
frequent flyer premiums while traveling on State business use them to reduce the cost of
subsequent business travel whenever possible.

72.51. (GP: Prison Industries) All agencies
funded in this Act, when procuring goods and services, shall first consider contracting for
services or purchasing goods and services through the Department of Corrections' Prison
Industries Program. The Department of Corrections shall furnish, upon request, to all agencies a
catalogue of goods and services provided by Prison Industries. The Department is hereby
directed to develop and market a catalogue of Prison Industries products for nationwide
circulation.

72.52. (GP: Out-Of-State Travel Report)
Annually on October 1, the Comptroller General shall issue a report on out-of-state travel
expenditures for the prior fiscal year which shall be distributed to the Senate Finance Committee,
the House Ways and Means Committee and the Statehouse Press Room. The Comptroller
General may use up to $500 of general fund appropriations for the purpose of providing copies
to the media or the public upon request. The report must contain a listing for every agency
receiving an appropriation in the annual General Appropriations Act. The listing must show at a
minimum the top ten percent of employees for whom out-of-state travel expenses and
registration fees were paid within each agency, not to exceed twenty-five employees per agency.
Agencies should include position titles for each of the top twenty-five travelers for each agency.
Expenditures must include state, federal and other sources of funds. The list for each agency
must be in rank order with the largest expenditure first and the name of the employee must be
shown with each amount. Agencies should include a brief summary of the type of out-of-state
travel the agency incurs. The Comptroller General may provide additional information as
deemed appropriate. The Comptroller General shall provide no exceptions to this report in that
the information contained is not considered confidential or restricted for economic development
purposes. However, further disclosure of detailed information shall be restricted as provided for
by law.

72.53. DELETED

72.54. (GP: School Technology Initiative)
From the funds appropriated/authorized to the Budget and Control Board's Office of Information
Resources for school technology, the Board shall, in consultation with the State Department of
Education and South Carolina Educational Television, begin the development of a statewide
educational technology initiative. This initiative is intended to provide technology connectivity
for K-12 public schools throughout the State and should, to the maximum extent possible,
involve public-private sector collaborative efforts. The Budget and Control Board shall retain
and carry forward funds to be used for the same purpose.

72.55. DELETED

72.56. (GP: Common Intake &
Assessment Task Force) A common intake and assessment procedure and a plan for its use shall
be developed by a task force to include a representative from each agency that provides services
to children with disabilities and their families. The agencies shall include the directors of the
Department of Education, the Department of Disabilities and Special Needs, the Department of
Health & Environmental Control, the Department of Mental Health and the Department of
Social Services or their designees. The task force shall also include five
advocates/consumers/family members who have children using services from these agencies. A
report shall be submitted to the Senate Finance Committee, the House Ways and Means
Committee and the Governor's Office by January 15, 1997. This task force shall continue and
report annually for three years on the implementation, quality and success of this plan.

72.57. (GP: Immunization System) The
Department of Health & Environmental Control, in conjunction with the Department of
Health & Human Services, shall use the funds appropriated for the immunization program
to enhance the vaccination delivery system, emphasizing public/private partnerships in the
funding and delivery systems, increase community participation, education and partnerships.
The strategic objective of this system shall be to eliminate vaccine-preventable diseases in South
Carolina. These agencies will monitor the quality and effectiveness of this system through the
development of an accessible statewide immunization information system and shall report
annually by January 15th to the Governor, the Senate Finance Committee, and the House Ways
and Means Committee. However, if adequate federal funds are made available, any excess funds
must be remitted to the General Fund.

72.58. (GP: (Long Term Care System) The
Department of Health and Human Services and the Department of Health and Environmental
Control shall, in coordination with other appropriate agencies and organizations, develop a
system of services which provides a continuum of long term care services for elderly individuals
and their families. The system shall integrate available funding streams, design a common
intake system, incorporate recipient directed care and voucher options to the extent possible,
expand the current continuum to better address all levels of care needed and develop an
eligibility/access system. The agencies will identify any changes necessary in the certificate of
need rules which will better support this system by lowering cost and increasing access. The
system shall include a process to routinely assess the system of care focusing on quality, access,
outcomes and efficiency. The agencies shall report annually to the Governor, to the Senate
Finance Committee and to the House Ways and Means Committee no later than January 15th on
this system.

72.59. (GP: Secretary of State Employee
Rights) Where the provisions of this Act transfer the Office of the Secretary of State or any
particular entities, sections, division or portions thereof, to another state agency, department or
division, the related employees of the Office of the Secretary of State are also transferred to and
become part of the receiving agency, department or division unless otherwise specifically
provided. All classified and unclassified personnel employed by the Office of the Secretary of
State on the effective date of this Act shall become employees of the receiving agency,
department or division, and retain the same compensation, and grade level, as applicable, unless
otherwise specifically provided. Employees transferred under this provision will not experience
a break in service and, if at the time of transfer, they are covered by the provisions of the State
Employee Grievance Procedure Act of 1982, they continue to be covered by the provisions of
that Act. This provision applies only to those employees who have at least a "meets"
performance requirements rating in their position with the Office of the Secretary of State prior
to the effective date of this Act.

72.60. (GP: Public Relations Contract Services)
All state agencies or other entities existing by state law that receive an annual appropriation are
required to file a report with the State Ethics Commission listing all contracts for public
relations, communications, and legislative strategy services. This report shall include the terms,
conditions, and amounts expended for these purposes and shall be submitted by June 30, 1998.

72.61. DELETED

72.62. (GP: State Operated Day Care Facilities
Fees) Any state agency receiving funding in this Act and any higher education institution,
including 4 year institutions, 2 year institutions, and technical colleges, that operates an early
childhood development center or day care facility shall charge, at a minimum, fees that are
comparable to those charged by private day care facilities in the local community. The
institution or agency shall not restrict enrollment in the center solely to the children of faculty,
staff, and students of the institution; nor shall fees be set at a lower level for faculty, staff, or
students of the institution or agency.

72.63. (GP: Prevent Welfare Reform
Duplication of Services) The intent of the General Assembly is that the Department of Social
Services not duplicate services available at the Employment Security Commission and other
state agencies. All state agencies are directed to cooperate with DSS as it implements the Family
Independence Act of 1995. Monies appropriated for the purpose of implementing the Family
Independence Act of 1995 and used to hire persons or procure services for employment training
purposes shall be reported to the Governor to ensure duplication of services does not occur.

72.64. DELETED

72.65. (GP: SDE Agriculture Education
Transfer to Clemson PSA) The Budget and Control Board, in conjunction with the Department
of Education, shall transfer all federal funds associated with Agricultural Education at the
Department of Education to Clemson-PSA no later than July 15, 1997. Notwithstanding any
other provisions of law, funds and positions transferred to Clemson-PSA from the Department of
Education for Agricultural Education shall be used for personnel positions and related office and
travel expenses to provide overall leadership, coordination, and structure for agricultural
education programs, EFA activities and SC Association of Young Farmers activities in the
public schools of South Carolina. Clemson PSA shall provide a report to the Department of
Education on the use and expenditure of the federal funds transferred by the Department of
Education to Clemson PSA no later than December 1, of the current fiscal year.

72.66. (GP: Transfer of Grants Services &
Indirect Cost Allocation) The Budget and Control Board, in conjunction with the Governor's
Office shall transfer all funds, positions, and related inventory and equipment associated with the
Grants Services Section and the Indirect Cost Allocation Section of the Office of Executive
Policy and Programs of the Governor's Office to the Division of Budget and Analyses of the
Budget and Control Board, as soon as practical on or after July 1, 1997. The operation of these
programs shall become the responsibility of the Division of Budget and Analyses.

The Budget and Control Board, Division of Budget and Analyses is further
directed to review Act 651 of 1978 and other appropriate sections of the Code of Laws and
propose any changes necessary in conjunction with this transfer not later than November 15,
1997.

72.67. (GP: $3M CCI Transfer to the General
Fund) Of the proceeds resulting from the sale of the Central Correctional Institution, the State
Budget and Control Board shall transfer three million dollars to the General Fund. The balance
of the proceeds from the sale of CCI are to be credited to the Ordinary Sinking Fund to be
expended in accordance with the procedures that regulate that fund.

72.68. (GP: Base Budget Analysis) Agencies'
annual accountability reports for 1996-97, as required in Section 1-1-810, must be accessible to
the Senate Finance Committee, House Ways & Means Committee and to the public on or
before November 1, 1997, for the purpose of a zero base budget analysis. Until performance
based funding is fully implemented and reported annually, the Commission on Higher Education
and the state supported colleges, universities and technical schools shall report in accordance
with Section 59-101-350. Technical assistance will be available from the Office of State Budget.
The House Ways and Means Committee may award a Certificate of Excellence in Governing to
the three agencies with the most exemplary accountability reports. These reports will be used as
models for future accountability reports.

72.69. (GP: Transfer of Printing Operations)
The following state agencies under the directions of the Governor's Office shall cooperate with
the Budget and Control Board to identify and facilitate the transfer of any portion of their
operation, including transfer of funds to the Budget and Control Board to support this function
during Fiscal Year 1997-98. The following agencies will make a permanent transfer of state
funds as specified below and the Department of Social Services shall permanently transfer two
full time equivalent positions to the Budget and Control Board, Division of Operations to be
effective July 1, 1997, for the management of all printed related issues.

72.70. (GP: Professional Dues) State agencies
and institutions are prohibited from paying or reimbursing professional dues payments for
individuals to the American Bar Association.

72.71. (GP: Federal/Other Funded Employee
Bonus) Notwithstanding any other provision of law, state agencies and institutions shall be
allowed to spend federal and other sources of revenue to provide selected employees a one-time
lump sum bonus not to exceed $1,000, based on objective guidelines established by the Budget
and Control Board. Agencies affected by this proviso shall maintain documents verifying that
the bonuses funded were from savings resulting from increased efficiency in their operations.
Also, agencies using Federal funds for the bonus must show that the use of these funds is in
compliance with Federal law. This payment is not a part of the employee's base salary and is not
earnable compensation for purposes of employee and employer contributions to respective
retirement systems.

72.72. DELETED

* 72.73. (GP: Victim/Witness
Personnel) The State Budget and Control Board is directed to conduct a study on the services
provided by the Attorney General's Office, the Department of Public Safety and the Governor's
Office Division of Victim's Assistance to victims and witnesses. The study shall include, but not
be limited to, the types of assistance rendered as well as a review of the existing number and
type of personnel providing such services. The State Budget and Control Board shall submit a
report to the Governor, the Chairman of the Senate Finance Committee and the Chairman of the
House Ways & Means Committee by January 1, 1998.

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

* 72.74. (GP: Boards of Dentistry
& Accountancy Study) The State Reorganization Commission is directed to study the
feasibility of transferring the Board of Dentistry and the Board of Accountancy from the
Department of Labor, Licensing and Regulations and establishing the Boards as separate
agencies with the same duties and powers as held prior to Act 181 of 1993, which restructured
state government. A report on the findings of the study shall be submitted to the Senate Finance
Committee and the Ways and Means Committee by December 1, 1997.

* Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17,
1997.

72.75. DELETED

72.76. (GP: Undesignated Surplus) Of the
undesignated surplus for FY 1996-97 as determined by the Comptroller General at the closing of
the FY 1996-97 accounting year, any undesignated surplus shall be transferred to the
Infrastructure Bank of South Carolina.

72.77. (GP: Transfer Division on Aging to
HHS) Notwithstanding any other provision of law, effective July 1, 1997, the duties, functions,
and responsibilities of the Division on Aging in the Office of the Governor are transferred to the
Department of Health and Human Services as the Office on Aging. The director of the
department must employ a deputy director to be the administrator for the office. The Budget and
Control Board shall take the necessary actions to effect this transfer. All personnel,
appropriations and FTEs of the Division shall be transferred to the Department of Health and
Human Services on July 1, 1997.

72.78. (GP: Collection on Dishonored Checks)
Any state agency may establish, collect, and retain fines to cover the costs associated with the
collection of dishonored checks returned to the agency due to insufficient funds. Such funds
shall be retained and expended by the agency in accordance with this purpose and any unused
amount shall carry forward to the following fiscal year.

72.79. DELETED

72.80. DELETED

** 72.81. (GP: Marine Remote Sensing
Device) From funds appropriated to the Department of Commerce, $109,000
shall be transferred to the S. C. Institute of Archaeology and Anthropology, University of South
Carolina, to acquire a marine remote sensing device to manage the state's submerged cultural
resources by identifying and inventorying these submerged cultural resources and to devise
strategies for use and protection of these resources and to monitor the Hunley site until the hull
can be recovered.

** Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
**Indicates those vetoes overridden by the General Assembly on June 17, 1997.

72.82. (GP: Transfer to Piedmont Tech.) From
funds appropriated, $200,000 dollars shall be transferred to be expended for the exclusive
purpose of the Piedmont Tech - Edgefield Facility renovation project.

SECTION 73

73.1. (Year End Expenditures) Unless specifically authorized
herein, the appropriations provided in Part I of this Act as ordinary expenses of the State
Government shall lapse on July 31, 1998. State agencies are required to submit all current fiscal
year input documents to the Comptroller General's Office by July 20, 1998. Appropriations for
Permanent Improvements, now outstanding or hereafter provided, shall lapse at the end of the
second fiscal year in which such appropriations were provided, unless definite commitments
shall have been made, with the approval of the State Budget and Control Board and Joint Bond
Review Committee, toward the accomplishment of the purposes for which the appropriations
were provided. Appropriations for other specific purposes aside from ordinary operating
expenses, now outstanding or hereafter provided, shall lapse at the end of the second fiscal year
in which such appropriations were provided, unless definite commitments shall have been made,
with the approval of the State Budget and Control Board, toward the accomplishment of the
purposes for which the appropriations were provided.

END OF PART IB

PLEASE NOTE:

Text printed in italic boldface were vetoed by the Governor on June 14, 1997.
*Indicates those vetoes sustained or continued by the General Assembly on June 17, 1997.
**Indicates those vetoes overridden by the General Assembly on June 17, 1997.
Unless otherwise stated, provisions not vetoed by the Governor took effect June 14, 1997.

PLEASE NOTE:

At the time this Act was printed, litigation was pending with respect to the validity of certain
vetoes. The outcome of this litigation may affect the provisions of this act that were the subject
of the vetoes.